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India’s largest public sector lender, the State Bank of India (SBI), announced on June 19 that its board has approved raising up to Rs 20,000 crore through long-term bonds in FY25. This fund-raising will be conducted either via a public issue or private placement.
The Central Board met today and granted approval for raising these long-term bonds, as stated in SBI’s regulatory filing. At around 13:15 hours IST, SBI shares were trading 0.22 percent higher at Rs 846.45 apiece on the BSE.
In January, SBI successfully raised Rs 5,000 crore through perpetual bonds at an 8.34 percent coupon. Throughout the last financial year, the bank accumulated a total of Rs 20,000 crore by selling 15-year infrastructure bonds.
Earlier this month, SBI’s London branch raised $100 million by issuing three-year senior unsecured floating-rate bonds. These bonds were sold at a spread of 95 basis points above the secured overnight financing rate (SOFR). By the end of the last financial year, SBI’s capital adequacy ratio (CAR) was at 14.28 percent.
“The capital ratios of the Bank continued to improve during FY24, driven by better planning, profit retention, and efficient risk management of the banking book,” SBI Chairman Dinesh Khara highlighted in the annual report.
This strategic move demonstrates SBI’s robust planning and commitment to strengthening its financial position while catering to the growing demands of India’s finance sector.
