The State Bank of India (SBI), the country's largest lender, raised Rs 3,717 crore on Wednesday through its third Basel III compliant Additional Tier 1 bond issuance in the current fiscal year, at an 8.25 percent coupon rate.

The bond proceeds will be used to supplement Additional Tier 1 Capital and the bank's overall capital base, as well as to strengthen capital adequacy in accordance with RBI guidelines.

The term of these bonds is perpetual, with a call option after ten years and on each anniversary after that.

The issue received an overwhelming response from investors, with bids totaling Rs 4,537 crores, and was oversubscribed by approximately 2.27 times over the base issue of Rs 2,000 crore, according to a statement issued by the SBI.

The total number of bids received was 53, indicating increased participation. The investors included provident and pension funds as well as insurance companies, according to the statement.