State Bank of India plans to raise up to Rs 20,000 crore from long-term bonds during FY25 through public issue or private placement, according to a stock exchange filing. The country's largest public sector lender has said the Central Board has approved this plan in its recent meeting, according to a stock exchange filing.
Its shares ended 1 percent higher at Rs 854 on the Bombay Stock Exchange.
This is also against the broader backdrop of Indian banks, including SBI, preparing to build up capital reserves to meet surging loan demand. Canara Bank and Punjab National Bank were among other state-run lenders planning to sell debt to raise funds this fiscal year. It had mobilised Rs 5,000 crore through perpetual bonds at an 8.34 percent clip in the beginning of the calendar year itself.
The country's largest lender SBI reported a hefty 24 percent jump in net profit at Rs 20,698 crore for Q4FY24 (January-March) against Rs 16,695 crore in the similar period last year. It has also declared a dividend of Rs 13.70 per equity share for FY24. Even as the quality of assets improved, with GNPA reducing to 2.24 per cent of total loans in Q4 from 2.78 per cent a year ago, capital continues to be a challenge for SBI.
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