SBI's fund-raising plan: 'Raised Rs 3,300 crore via AT-1 bonds,' says Chairman Dinesh Khara
SBI on Saturday reported 8% growth in standalone net profit for the September quarter at Rs 14,330 crore
- Nov 6, 2023,
- Updated Nov 6, 2023 11:41 PM IST
State Bank of India (SBI) Chairman Dinesh Kumar Khara said the country's largest PSU bank raised Rs 3,300 crore through additional tier-1, or perpetual, bonds at a coupon rate of 8.1%.
Speaking to Siddharth Zarabi, Managing Editor, Business Today TV Khara spoke about SBI's September quarter results and also spoke at length about the bank's fundraising plans after it recently raised Rs 10,000 crore from tier-2 bonds.
"We will be raising our tier one also and as far as the tier 2 and also the infrastructure bond is concerned we could raise them at very, very fine spread and we are quite conscious in terms of the cost at which we would like to raise these papers and we have already raised about Rs 3,300 crore via AT-1. Maybe the remaining part of the current year we'll be raising the remaining left out portion of the AT-1," he said.
SBI on Saturday reported 8% growth in standalone net profit for the September quarter at Rs 14,330 crore.
The bank, which controls over a fifth of the overall market and has the widest network in the country, reported a total income of over Rs 1.12 lakh crore for the quarter under review, up from Rs 88,733 crore in the year-ago period.
From an asset quality perspective, its gross non-performing assets ratio was at 2.55% as of September 30, an improvement from the 3.52% in the year-ago period and the 2.76% in the first quarter of the current fiscal.
Its overall capital adequacy stood at 14.28% as of September 30.
Net interest income – the difference between a bank’s interest earned and paid – rose 12.3% year-on-year to Rs 39,500 crore.
"We are pleased to announce a quarterly net profit of Rs 14,330 crore, up 8% on year-on-year (YoY). The reason for this is the impact of the increase in advances, which have seen growth almost uniformly, in retail SME and agriculture books. In terms of corporate, we have seen growth of about 6%. But we have seen 15% to 20% growth in retail, SME and agriculture book and even international book has seen growth of about 8%. Apart from that, we have also seen our e-loan advances going up YoY.
"Apart from that, the quality of the loan book is excellent. Our gross NPA ratio is at 2.55%, and our net NPA ratio is 0.70%. Credit costs are 0.22%. These are some of the contributing reasons, and we have seen reasonable growth in terms of our non-interest income—be it the loan processing charges, or cross-selling, we have seen growth everywhere. So, these are the reasons why we have seen much better results," said Khara.
State Bank of India (SBI) Chairman Dinesh Kumar Khara said the country's largest PSU bank raised Rs 3,300 crore through additional tier-1, or perpetual, bonds at a coupon rate of 8.1%.
Speaking to Siddharth Zarabi, Managing Editor, Business Today TV Khara spoke about SBI's September quarter results and also spoke at length about the bank's fundraising plans after it recently raised Rs 10,000 crore from tier-2 bonds.
"We will be raising our tier one also and as far as the tier 2 and also the infrastructure bond is concerned we could raise them at very, very fine spread and we are quite conscious in terms of the cost at which we would like to raise these papers and we have already raised about Rs 3,300 crore via AT-1. Maybe the remaining part of the current year we'll be raising the remaining left out portion of the AT-1," he said.
SBI on Saturday reported 8% growth in standalone net profit for the September quarter at Rs 14,330 crore.
The bank, which controls over a fifth of the overall market and has the widest network in the country, reported a total income of over Rs 1.12 lakh crore for the quarter under review, up from Rs 88,733 crore in the year-ago period.
From an asset quality perspective, its gross non-performing assets ratio was at 2.55% as of September 30, an improvement from the 3.52% in the year-ago period and the 2.76% in the first quarter of the current fiscal.
Its overall capital adequacy stood at 14.28% as of September 30.
Net interest income – the difference between a bank’s interest earned and paid – rose 12.3% year-on-year to Rs 39,500 crore.
"We are pleased to announce a quarterly net profit of Rs 14,330 crore, up 8% on year-on-year (YoY). The reason for this is the impact of the increase in advances, which have seen growth almost uniformly, in retail SME and agriculture books. In terms of corporate, we have seen growth of about 6%. But we have seen 15% to 20% growth in retail, SME and agriculture book and even international book has seen growth of about 8%. Apart from that, we have also seen our e-loan advances going up YoY.
"Apart from that, the quality of the loan book is excellent. Our gross NPA ratio is at 2.55%, and our net NPA ratio is 0.70%. Credit costs are 0.22%. These are some of the contributing reasons, and we have seen reasonable growth in terms of our non-interest income—be it the loan processing charges, or cross-selling, we have seen growth everywhere. So, these are the reasons why we have seen much better results," said Khara.