State Bank of India to raise up to Rs 20,000 cr via long-term bonds in FY25 | Company News

In a regulatory filing on Wednesday, SBI disclosed that its central board had approved the proposal during a recent meeting.

 “The Central Board at its meeting held today accorded approval for raising long-term bonds up to an amount of Rs. 20,000 crore through a public issue or private placement, during FY25,” the bank said.

In January, SBI raised Rs 5,000 crore through perpetual bonds with an 8.34 per cent coupon. During the last financial year, the bank raised a total of Rs 20,000 crore through the sale of 15-year infrastructure bonds.

Through its London branch, earlier this month, SBI secured $100 million by selling three-year senior unsecured floating-rate bonds. These bonds were sold at a spread of 95 basis points above the secured overnight financing rate (SOFR).

For the full financial year 2023-24 (FY24), SBI reported record net profit of  Rs 61,077 crore, which was a 21.6 per cent year-on-year growth. The bank board had declared a dividend of Rs 13.70 per share for FY24, up from Rs 11.30 per share declared at the end of FY23.

As of 1:15 PM on the day of the announcement, shares of SBI were trading 0.22 per cent higher at Rs 846.45 apiece on the BSE.

First Published: Jun 19 2024 | 2:12 PM IST