State Bank of India (SBI), the country’s largest lender, received board approval to raise ₹50,000 crore through debt instruments during FY24.
These debt instruments could include long-term bonds, Long Term Bonds, Basel III compliant Additional Tier 1 Bonds and Basel III compliant Tier 2 Bonds, the state-run lender said in an exchange filing on Friday.
“The Central Board of the Bank has, inter alia accorded approval for raising funds in INR and / or any other convertible currency by issue of debt instruments including but not limited to Long Term Bonds, Basel III compliant Additional Tier 1 Bonds, Basel III compliant Tier 2 Bonds, upto an amount of ₹50,000 crores through private placement mode to Indian and/or Overseas investors during FY24, subject to GOI approval wherever required,” SBI said.
Earlier on June 5, SBI had informed that its board was scheduled to meet on June 9 to consider and approve raising of funds during FY.
SBI had reported a net profit of ₹16,694.5 crore for the quarter ended March 2023, registering a rise of 83% from ₹9,113.5 crore in the corresponding quarter last year.
For FY23, SBI’s net profit crossed ₹50,000 crore-mark and stood at ₹50,232 crore, witnessing a growth of 58.58% YoY.
The state run lender’s net interest income (NII) during Q4FY23 increased 29.5% YoY to ₹40,392 crore, while domestic net interest margin (NIM) for Q4FY23 increased by 44 bps YoY to 3.84%.
SBI’s Capital Adequacy Ratio (CAR) as at the end of FY23 improved by 85 bps YoY and stood at 14.68%.
The stock price of SBI has gained over 23% in the last one year period. At 2:15 pm, the shares of SBI were trading 1.84% lower at ₹577.65 apiece on the BSE.
