The State Bank of India (SBI), the country’s largest public sector bank, announced its intention to raise up to Rs 20,000 crore through long-term bonds during the financial year 2024-25.
The company revealed this decision in a filing to the stock exchanges on Wednesday.
The Board of Directors, in its meeting held today, approved the proposal stating, “We submit that the Central Board at its meeting held today has, inter alia, accorded approval for raising long-term bonds up to an amount of Rs 20,000 crore through a public issue or private placement, during FY25.”
Following this announcement, SBI’s stock closed higher, ending the day at Rs 854 on the Bombay Stock Exchange (BSE), marking a gain of over 1 percent.
The move by SBI is part of its strategy to bolster its capital reserves amidst rising loan demands in the economy.
Several other state-run banks, including Canara Bank and Punjab National Bank, have also outlined plans to raise funds through debt instruments in the current fiscal year.
Earlier in the year, SBI successfully raised Rs 5,000 crore through perpetual bonds offering an 8.34 per cent coupon rate.
The bank’s financial performance in the fourth quarter of the previous fiscal year showed robust growth, with a 24 percent increase in net profit to Rs 20,698 crore, compared to Rs 16,695 crore in the corresponding period last year.
SBI declared a dividend of Rs 13.70 per share for the fiscal year 2023-24.
Furthermore, the bank reported an improvement in its asset quality, with gross non-performing assets (GNPA) decreasing to 2.24 percent of total loans, down from 2.78 percent in the previous year’s fourth quarter.
State Bank Of India:
State Bank of India (SBI), headquartered in Mumbai, is the largest public sector bank in India. With a widespread network across the country and overseas, SBI serves millions of customers through its diversified range of banking products and services.
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