SBI to raise ₹20,000 crore through bonds

20 Jun 2024 , 10:13 AM

State Bank of India (SBI) has announced board approval to raise up to ₹20,000 Crore via long-term bonds in FY 2024-25. Approval was granted at the Central Board meeting on June 19, 2024, for raising funds through public issue or private placement.

At the time of writing, shares of SBI is trading at ₹846.65 which is a 0.70% dip than the previous close. The stock has witnessed a total of 49% growth in the last one year, and 32% since the beginning of the year.

In January, SBI raised ₹5,000 Crore via perpetual bonds at a coupon rate of 8.34%. Last financial year, SBI issued 15-year infrastructure bonds to raise ₹20,000 Crore.

Earlier this month, SBI’s London branch raised $100 million through three-year senior unsecured floating-rate bonds, priced 95 basis points above the secured overnight financing rate (SOFR).

Indian banks, including SBI, Canara Bank, and Punjab National Bank, are increasing capital bases to meet rising loan demand. Last week, SBI approved raising $3 billion via public offer or private placement of senior unsecured notes in U.S. dollars or other major foreign currencies.