State Bank of India (SBIN), the largest bank in the country, has received approval from its board of directors to raise ₹50,000 crore through various debt instruments in the fiscal year 2024.
According to a BSE filing made on Friday, the state-owned bank expressed that the debt instruments being considered may encompass long-term bonds, Basel III compliant Additional Tier 1 Bonds, and Basel III compliant Tier 2 Bonds.
SBI has provided clarification by stating that the bank’s Central Board has granted approval to raise funds in Indian Rupees or any other convertible currency by issuing debt instruments, which may include Long Term Bonds, Basel III compliant Additional Tier 1 Bonds, and Basel III compliant Tier 2 Bonds. Earlier, on June 5, SBI had announced that its board meeting, scheduled for June 9, would discuss and approve the fundraising plan for the fiscal year.
SBI’s financial performance for the quarter ended March 2023 showed a net profit of ₹16,694.5 crore, marking an impressive 83% increase compared to ₹9,113.5 crore in the same quarter of the previous year.
For the entire fiscal year 2023, SBI’s net profit surpassed the ₹50,000 crore milestone, reaching ₹50,232 crore, reflecting a year-on-year growth of 58.58%.
SBI’s net interest income (NII) during Q4FY23 rose by 29.5% YoY to ₹40,392 crore, and the domestic net interest margin (NIM) for the same quarter increased by 44 basis points YoY to 3.84%.
The bank’s Capital Adequacy Ratio (CAR) as of the end of FY23 improved by 85 basis points YoY, reaching 14.68%.
During the past year, the stock price of SBI has experienced a growth of over 23%. However, in the previous week, the shares of SBI were observed trading at ₹577.65 per share on the Bombay Stock Exchange (BSE), reflecting a decline of 1.84% from the previously stated levels.
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