SBI shares declines 4% for second straight day ahead of board meet to consider $3 billion fundraising

The state-run lender informed bourses that the executive committee of its Central Board will meet on June 11, 2024, to consider a proposal for long term fundraising of $3 billion.

The fundraise will be in single or multiple tranches of up to $3 billion through public offer or private placement of senior unsecured notes in US Dollar or any other major foreign currency during FY 2024-25, the bank informed the stock exchanges.

The bank’s board in April 2023 had approved long term fundraising of $2 billion in the last financial year.

State Bank of India shares continued to decline for the second day on Wednesday, falling by up to 4% to a low of ₹744.05 per share on the NSE. The stock opened higher but could not hold onto gains and slipped into red in early trade. However, shares of SBI recovered some losses to trade 1.39% lower at ₹764 apiece on the NSE at 11:45 am.

More than 1.14 crore shares of SBI traded on NSE in morning deals.

SBI shares had tanked nearly 20% on Tuesday to hit a more than two-month low level of ₹731.95 on NSE. The stock later closed at ₹775.20 per share, down by more than 14% amid a broader selloff as the BJP failed to secure the full majority on its own in Lok Sabha polls.

SBI had reported a 24% jump in standalone net profit to ₹20,698 crore for the March quarter of FY 2023-24 compared to ₹16,694 crore in the year-ago period.

The bank reported a 3% rise in net interest income for the quarter to ₹41,655 crore compared to ₹40,393 crore in the yearago quarter. Operating profit rose by 17% to ₹ 28,748 crore in Q4 of FY24.

The bank also announced a dividend of ₹13.70 per share for 2023-24.