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SBI gets board approval to raise up to $2.5 billion in bonds

On Wednesday, SBI shares rose 1.65% to  ₹310.70 apiece on the BSE while the benchmark Sensex gained 1.27% to end the day at 39,054.68 points. (Mint)Premium
On Wednesday, SBI shares rose 1.65% to 310.70 apiece on the BSE while the benchmark Sensex gained 1.27% to end the day at 39,054.68 points. (Mint)

  • SBI has received permission to raise the funds via a public offer and/or private placement of senior unsecured notes during FY20
  • The State Bank of India (SBI) had in January raised $1.25 billion through bonds from the overseas market

Mumbai: The State Bank of India (SBI) Wednesday said its board has given its approval to raise up to $2.5 billion (around 17,000 crore) through bonds in FY20.

In a statement issued Wednesday, SBI said the board has approved “long-term fund raising in single/multiple tranches up to $2.5 billion under Reg-S/144A, through a public offer and/or private placement of senior unsecured notes in US dollar or any other convertible currency during 2019-20."

In January, SBI had raised $1.25 billion through bonds from the overseas market.

The bank had said in a statement that it concluded the standalone issuance of fixed rate senior unsecured notes in two tranches of $850 million for five years with a coupon of 4.375%, and $400 million for three years with a coupon of 4%, payable semi-annually.

The lender posted net profit of 3,954.81 crore in the December quarter of FY19, the highest ever in seven years. It had posted losses of 2,416.37 crore in the year-ago period.

Net profit rose on account of improved asset quality and strong net interest income growth. Profit was higher than the 3,270 crore estimated by a Bloomberg poll of 18 analysts.

SBI's gross non-performing assets (NPAs), as a percentage of total advances, fell to 8.71% in the December quarter, compared with 9.95% in the previous quarter, and 10.35% in the year-ago period.

On Wednesday, SBI shares rose 1.65% to 310.70 apiece on the BSE while the benchmark Sensex gained 1.27% to end the day at 39,054.68 points.

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