The State Bank of India (SBI), the country's largest lender, has announced plans to issue long-term bonds worth up to Rs 20,000 crore this fiscal year. The funds will be raised through either a public offering or a private placement. In a regulatory statement on Wednesday, SBI stated that the idea was approved by its central board during a recent meeting.
"The Central Board at its meeting held today accorded approval for raising long-term bonds up to an amount of Rs. 20,000 crore through a public issue or private placement, during FY25," the lender stated.
State Bank of India
In January, SBI raised Rs 5,000 crore through perpetual bonds with an 8.34% coupon. During the previous fiscal year, the bank generated Rs 20,000 crore from the issue of 15-year infrastructure bonds.
SBI raised $100 million earlier this month from its London business by offering three-year senior unsecured floating-rate bonds. These bonds were sold with a 95 basis point spread over the secured overnight financing rate (SOFR).
As previously reported by a credible source, the bank has also begun conversations with market participants about raising around Rs 10,000 crore ($1.20 billion) through infrastructure bonds. This will be the bank's first bond issuance and the country's first infrastructure bond sale this fiscal year.
For the fiscal year 2023-24 (FY24), SBI posted a record net profit of Rs 61,077 crore, a 21.6 percent year-on-year increase. The bank board declared a dividend of Rs 13.70 per share for FY24, an increase from Rs 11.30 per share paid at the end of FY23.
