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 The State Bank of India has approved raising another 100 billion rupees ($1.21 billion) through infrastructure bonds this quarter to fund credit growth, an official at the nation's largest lender said on Tuesday.

The executive committee of the bank's central board, at a meeting held earlier in the day, approved the fundraise through a public issue or private placement during this financial year.

In its first tranche, the country's biggest lender raised 100 billion rupees through 10-year infrastructure bonds at 7.51% annual coupon in December.

The funds will come in handy for credit growth, and the bank would not need to maintain any statutory liquidity ratio or cash reserve ratio for funds raised through such bond issuances, the official said, requesting anonymity because he is not allowed to talk to media.

"The funds raised through these notes will also help in meeting priority-sector lending targets," the official said.

In November last year, SBI Chairman Dinesh Kumar Khara had said that the lender expects credit growth of 14%-16% in the current financial year. The bank has a term loan pipeline of 2.4 trillion rupees as it sees demand coming in from sectors such as infrastructure, renewables and services.

Apart from the December fundraise the lender also raised 68.72 billion rupees through Basel III-compliant additional Tier I perpetual bonds in September and 40 billion rupees through 15-year Tier II bonds at 7.57% coupon in the same month.