SBI fundraising: India's largest PSB approves raising long-term funds up to $3 billion in FY26; Check details

SBI fundraising: State Bank of India (SBI) announced on Tuesday, May 20, that its board has approved raising up to $3 billion in long-term funds in fiscal 2025-26 (FY26). India's largest public sector bank (PSB) said that it will raise funds in single or multiple tranches through a public offer or private placement of unsecured notes. 

“….We submit that the Executive Committee of the Central Board in its meeting held on May 20 has approved, inter alia, to examine the status and decide on long term fund raising in single /multiple tranches of up to $3 billion under Reg-S/144A, through a public offer and/or private placement of senior unsecured notes in US dollar or any other major foreign currency during FY 2025-26,” said SBI in a regulatory filing to the stock exchanges.
 

SBI Q4 Results

SBI announced its January-March quarter results for fiscal 2024-25 (Q4FY25) on May 3, reporting a drop of 10 per cent in standalone net profit to ₹18,642.59 crore, compared to ₹20,698.35 crore in the corresponding period last year. The state-run lender's net interest income (NII) stood at ₹42,774 crore.

SBI's operating profit for FY25 crossed ₹1 lakh crore and grew by 17.89 per cent year-on-year (YoY) to ₹1,10,579 crore, while operating profit for Q4FY25 grew by 8.83 per cent YoY to ₹31,286 crore. The PSB declared a dividend of ₹15.90 per share (1,590 per cent) for FY25. The record date of the dividend was fixed on May 16, and the payment date is May 30, 2025.

SBI also declared fundraising of up to ₹25,000 crore in FY26 via qualified institution placement (QIP) or follow-on public offer (FPO). SBI's asset quality improved, with gross non-performing assets (NPAs) declining to 1.82 per cent of the total advances in the fourth quarter from 2.24 per cent as at March-end 2024. Similarly, net NPAs eased to 0.47 per cent as against 0.57 per cent.

SBI Share Price Trend

On Tuesday, shares of SBI opened at ₹798.25 and tanked two per cent to hit an intra-day low of ₹784, before settling 1.20 per cent lower at ₹785.35 apiece on the BSE. Shares of the PSB have dropped nearly three per cent in five days, four per cent in one month, and six per cent in one year.

Meanwhile, SBI cut fixed deposit rates by 20 basis points across tenors effective May 16. According to the bank's website, the cut in interest rates on retail domestic term deposits below ₹3 crore applies to both the general public and senior citizens.

Deposits for 2 years to less than 3 years give the maximum interest to investors at 6.7 per cent, followed by 3 years to less than 5 years, which gives 6.55 per cent interest from May 16. Fixed deposits of five years to 10 years now get interest of 6.30 per cent for the general public, while it is 6.5 per cent for deposits of duration one year to less than two years.