(In third paragraph, corrects period to the "the first 11 months of 2012", from "January to November".)
MOSCOW Dec 17 (Reuters) - Sberbank, Russia's biggest lender, may issue bonds worth a total 500 billion roubles ($16 billion), the bank said on Monday, citing a decision by its supervisory board.
The decision comes as domestic lenders face increasing competition for liquidity amid rising consumer lending.
Retail lending grew 36 percent in the first 11 months of 2012, three times the pace of corporate lending and significantly lagging funding expansion, central bank data showed.
Since the start of the year, retail deposits were up 13 percent while corporate funds added only 7.4 percent.
"It is obvious that the decision to register such a programme was pushed by increased competition for deposits," VTB Capital analyst Maxim Korovin said.
Aiming to diversify its funding base, Sberbank has raised over $6 billion via Eurobonds this year, or around 11 percent of total Eurobond issues by local borrowers in 2012.
Korovin said the introduction of Euroclear settlement in the rouble bond market, which will ease access for foreign buyers from next year, was expected to boost demand for quasi-sovereign bonds and will likely help Sberbank get more attractive rates on its bonds. ($1 = 30.7349 roubles) (Reporting by Oksana Kobzeva; Writing by Maria Kiselyova and Katya Golubkova; Editing by Dan Lalor)