SBI gets board approval to raise up to $2.5 billion in bonds1 min read . Updated: 25 Apr 2019, 03:13 AM IST
- 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.