SBI Card to raise ₹3,000 crore from debentures; check details
This fundraising would be done through private placement in one or more tranches over a period of time, SBI Cards said.
PremiumSBI Card on May 30 said it plans to raise up to ₹3,000 crore by issuing debentures to fund business growth. The decision to consider and approve the proposal for raising funds through the issuance of non-convertible debentures (NCDs) aggregating to ₹3,000 crore would be taken in June 5 board meeting, SBI Card said in a regulatory filing.
This fundraising would be done through private placement in one or more tranches over a period of time, it added. SBI Cards featured among global investment banking firm Jefferies' top financial picks from the insurance sector.
Also Read: Despite SBI Card shares' underperformance, here's why Jefferies initiates coverage with 'Buy'
Jefferies likes stocks such as Bajaj Finance, SBI Card, Cholamandalam Investment and Can Fin Homes among NBFCs. Among banks, the foreign brokerage has a liking for ICICI Bank, Axis Bank and IndusInd Bank. HDFC Life and SBI Life are its top picks from the insurance sector, the foreign brokerage said in a note on May 30.
Banks see moderation in credit growth and net interest margin (NIM), but are confident of quality and return on equity (ROE), according to Jefferies. NBFCs, it said, expect strong growth in consumer loan and wholesale-NBFCs plan to disintegrate loans.
On May 30, shares of SBI Cards and Payment Services settled 1.18 per cent higher at ₹916.70 apiece on the BSE.
"Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!" Click here!
