SBI Board approves ₹20,000-crore fundraising via long term bonds

The fundraising will be completed through public issue or private placement of the bonds, SBI said in a filing to the stock exchanges.

"The Central Board at its meeting held today, 19 June 2024, has inter alia accorded approval for raising long-term bonds up to an amount of ₹20,000 crore through a public issue or private placement, during FY25," the bank informed the bourses.

Earlier this month, the government-owned bank announced plans to raise up to $3 billion via foreign currency bonds. SBI’s foreign currency bonds are considered to be quasi-sovereign debt, known as one of the safest in comparison to bonds issued by other Indian firms.

The largest lender posted an impressive 24% jump in its net profit for the fourth quarter ending on March 31, 2024, at ₹20,698 crore. The bank’s net interest income (NII) also rose 3.13% to ₹41,655 crore during the quarter. SBI had reported NII at ₹40,392.5 crore in the year-ago period.

The bank's interest earned swelled by nearly 20% to ₹1.11 lakh crore in the period under review compared to ₹92,951 crore a year ago.

For the full financial year 2023-24, SBI’s net profit stood at ₹61,077 crore, up 21.59% year-on-year. The bank’s NII for FY24 increased by 10.38% YoY to ₹1.59 lakh crore compared to ₹1.44 lakh crore in FY23.

Shares of SBI closed 1.11% higher at ₹854.3 apiece on the NSE.