New Delhi2 hours ago
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The board of State Bank of India (SBI) has approved raising up to $ 3 billion (Rs 25,073 crore) through loans in FY 2025. The country’s largest lender SBI gave this information in its stock exchange filing on June 11 (Tuesday).
SBI said the bank will raise funds in one or more tranches through a public offer or private placement of senior secured notes, denominated in US dollars or any other major foreign currency.
SBI did not tell where the funds will be used
However, SBI has not given information about where the funds will be used. Indian banks are increasing their capital base to meet the increasing demand for loans.
Many PSU lenders are planning to raise funds in this financial year.
Many PSU lenders including Canara Bank, Punjab and Sindh Bank and Punjab National Bank are planning to raise funds through loans in this financial year. In January, SBI had raised Rs 5,000 crore by selling ‘Basel III-compliant Additional Tier-I Perpetual Bonds’.
The bank is also ready to raise equity capital to support growth.
Chairman Dinesh Kumar Khara had said last month that the lender is also ready to raise equity capital to support growth. On Tuesday, SBI shares closed at Rs 835.50 with a gain of 0.44%. Its market cap is Rs 7.45 lakh crore.
SBI shares gave 44.39% return to its investors in one year.
SBI shares have risen 3.30% in the last one month and 36.02% in the last six months. The company’s shares have given 44.39% returns to its investors in one year.
SBI’s fourth quarter profit increased by 24% to ₹20,698 crore
SBI’s profit in the fourth quarter (January-March) of the financial year 2023-24 increased by 23.98% year-on-year to ₹20,698 crore. The public sector bank had reported a net profit of ₹16,695 crore in the same quarter a year ago.
Interest income increased by 19.46% to Rs 6,909 crore
The bank’s interest income in the fourth quarter increased by 19.46% year-on-year to ₹1,11,043 crore. It was Rs 92,951 crore in the same quarter last year.
Whereas in the last quarter (Q3FY24), the bank had earned ₹1,06,734 crore from interest. That means the company’s net interest income has increased by 4.03% on quarterly basis (QoQ).
Amount not returned becomes NPA
If the loan or advance given by the bank is not returned on time, the bank declares that amount as NPA or non-performing asset. Generally, if returns are not received for 90 days, the bank puts the loan or advance amount in the NPA list.
SBI is the largest bank in the country
State Bank of India is the largest government bank in the country. The government holds 56.92% stake in SBI. It was established on 1 July 1955. The headquarters of the bank is in Mumbai.
It has more than 22,405 branches and more than 48 crore customers with a market share of one-fourth. The bank operates in 29 countries of the world. It has 235 branches outside India.
