SBI approves raising to Rs 20,000 crore for FY25 via long-term bonds
India’s largest public sector lender, State Bank of India (SBI), announced on June 19 that its board has approved raising Rs 20,000 crore through long-term bonds via a public issue or private placement during FY25.
“The Central Board at its meeting held on 19th June 2024, has, inter alia, accorded approval for raising long-term bonds to an amount of Rs 20,000 crore through a public issue or private placement during FY25,” SBI stated in a regulatory filing.
In January, the State Bank of India raised Rs 5,000 crore through perpetual bonds at an 8.34 percent coupon rate. Last financial year, it raised a total of Rs 20,000 crore by selling 15-year infrastructure bonds.
Earlier this month, State bank of India raised $100 million through its London branch by selling three-year senior unsecured floating-rate bonds at a spread of 95 basis points above the secured overnight financing rate (SOFR). At the end of the last financial year, the Bank’s capital adequacy ratio (CAR) stood at 14.28 percent.
“The capital ratios of the Bank continued to improve during FY24 on the back of better planning, plough back of profit, and efficient risk management of the banking book,” SBI Chairman Dinesh Khara noted in the annual report.
