State Bank of India (SBI) announced board approval to raise up to ₹20,000 crore through long-term bonds in FY 2024-25. The central board meeting on June 19, 2024, approved raising funds through public issue or private placement.
At the time of writing, SBI shares are trading at ₹846.65 which is 0.70% lower than its previous close. The stock has seen a total rise of 49% in the past year and 32% since the beginning of the year.
In January, SBI raised ₹5,000 crore through perpetual bonds at a coupon rate of 8.34%. In the last financial year, SBI had issued 15-year infrastructure bonds to raise ₹20,000 crore.
Earlier this month, SBI’s London branch raised $100 million through three-year senior unsecured floating-rate bonds priced 95 basis points above the secured overnight financing rate (SOFR).
Indian banks including SBI, Canara Bank and Punjab National Bank are increasing their capital base to meet the growing credit demand.
In recent weeks, SBI had approved refinancing of $3 billion through public offering or private placement of senior unsecured notes denominated in US dollars or other major foreign currencies.
