SBI to consider raising $3 billion via foreign currency bonds in FY25

The fund-raising could be via public offer or private placement of senior unsecured notes in the dollar or any other foreign currency, it said. Shares of the public sector lender were trading 0.74% higher on Tuesday.

SBI’s foreign currency bonds are considered to be quasi-sovereign debt, meaning foreign investors consider this one of the safest forms of bet relative to bonds issued by other Indian firms. As a result, the lender’s bonds usually tend to find attractive pricing in the international market.

During the fourth quarter of fiscal year 2024, the State Bank of India reported a 24% year-on-year (YoY) rise in its net profit at ₹20,698 crore. Net interest income (NII), the difference between interest earned and interest expended, rose 3.13% to ₹41,655 crore during the quarter.

At the same time, net interest margin (NIM) declined 37 basis points (bps) to 3.47%. Asset quality improved with the gross non-performing assets (NPA) ratio declining 54 bps YoY to 2.24% and the net NPA ratio falling 10 bps to 0.57% during the quarter.

Net profit for FY24 stood at ₹61,077 crore, witnessing a growth of 21.59% YoY after accounting for wage settlement and a one-time exceptional item of ₹7,100 crore. NII for FY24 increased by 10.38% YoY to ₹1.59 lakh crore.

Gross advances rose 15.24% YoY to ₹37.67 lakh crore while deposits rose 11.13% to ₹49.16 lakh crore. NIM for FY24 is marginally down by 9 bps YoY to 3.28%.

Shares of the bank have gained over 30% since the beginning of the year. The stock has risen nearly 45% in the last one year.