SBI Board approves fundraise of up to Rs 50,000 crore through debt instruments

State Bank of India said its Board of Directors on Friday approved fundraise of up to Rs 50,000 crore through issue of debt instruments on a private placement basis during FY24.

"The Central Board of the Bank has accorded approval for raising funds in INR and / or any other convertible currency by issue of debt instruments including but not limited to Long Term Bonds, Basel III compliant Additional Tier 1 Bonds, Basel III compliant Tier 2 Bonds, upto an amount of Rs 50,000 crores through private placement mode to Indian and/or Overseas investors during FY24, subject to GOI approval wherever required," said SBI in a stock exchange filing. 

At 1405 hours on Friday, SBI's scrip on BSE was trading 1.8% lower at Rs 577.75.

Last month, SBI, the country’s largest public sector lender, raised $750 million under its $10-billion Global Medium Note programme to fund its overseas business growth.

The fund was raised at INX’s Global Securities Market (GSM), GIFT International Financial Services Centre (IFSC) at Gandhinagar from global investors. The bonds were issued through SBI’s London Branch to fund offshore business growth and were priced competitively. "This demonstrates strong investor confidence in the country’s largest bank and paves the way for a strong pipeline of foreign currency bond issuances this year," it said.

SBI's March quarter net profit zoomed nearly 90 per cent to Rs 18,094 crore on a consolidated level, helped by a robust performance on the core income front and an improvement in asset quality to the decadal best.

On a standalone basis, it reported an 83 per cent jump in its net profit at Rs 16,695 crore, while the same for FY23 came 58 per cent up at Rs 50,232 crore. Both the quarterly and fiscal year profits were the highest ever.