BackSBI to raise ₹50k crore via debt instruments
The state-run lender’s central board approved raising the funds either in rupees or any other convertible currency, it said in an exchange filing.
PremiumMUMBAI : State Bank of India (SBI) on Friday said its board has approved a proposal to raise up to ₹50,000 crore this fiscal year through various debt instruments.
India’s largest bank intends to raise the funds by issuing long-term bonds, Basel III-compliant Additional Tier 1 (AT-1) bonds, and Basel III-compliant Tier 2 bonds, in private placements to either Indian or overseas investors, subject to government approval, wherever required. The state-run lender’s central board approved raising the funds either in rupees or any other convertible currency, it said in an exchange filing.
On Monday, SBI announced that its board would meet on 9 June to discuss the fundraising proposal. The bank’s total capital adequacy ratio stood at 14.68%, as against 12.1% required under regulatory norms. While SBI’s AT-1 ratio was at 1.79%, its tier two ratio was at 2.62%.
“The bank has remained very well-capitalized, and we have sufficient headroom to take care of the normal business growth requirement," Dinesh Khara, chairman, SBI, told analysts on 18 May. In the quarter ended March, SBI clocked an 83% rise in net profit om a year earlier to ₹ 16,694.5 crore. Net interest income (NII) during Q4 FY23 rose 29.5% to ₹40,392 crore. The bank’s domestic net interest margin (NIM) increased 44 basis points (bps) from a year earlier to 3.84%. Operating profit during the quarter grew 24.9% to ₹24,621 crore.
SBI’s asset quality improved during the quarter. Gross non-performing asset (NPA) ratio fell 36 bps to 2.78%, from 3.14% in the sequential quarter.
Net NPA ratio also decreased 10 bps to 0.67%, from 0.77% in the previous quarter. For FY23, SBI’s net profit crossed ₹ 50,000 crore and stood at ₹50,232 crore, witnessing a growth of 58.6% y-o-y.
Shares of SBI ended 1.67% lower at ₹578.70 apiece on the NSE on Friday.
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