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Back SBI board approves raising upto ₹50,000 crore through debt instruments

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.

ByMoneycontrol

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