The State Bank of India (SBI), in its stock exchange filing on June 11, 2024 said that, its board approved a plan to raise debt by up to USD 3 billion this fiscal year.
The state financial institution intends to secure the money in several tranches, either through a public offer or through private placement of unsecured notes. According to the bank’s statement, these notes are denominated in US dollars or other major foreign currencies. SBI was closed at INR 835.25 on BSE on June 11, 2024.
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Approval for long term fund raising
“In this regard, pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we submit that the Executive Committee of the Central Board at its meeting held today, i.e., June 11 2024, has approved, inter alia, to examine the status and decide on long-term fund raising in single/multiple tranches of up to US$ 3 Billion (US$ Three Billion) under RegS/144A, through a public offer and/or private placement of senior unsecured notes in US Dollar or any other major foreign currency during FY 2024-25,” the SBI said in an exchange filing.
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Other banks to raise funds this year
This is because Indian banks, including SBI, are increasing their capital reserves to meet growing credit needs. Several other state-owned banks such as Canara Bank, Punjab and Sind Bank, and Punjab National Bank are also planning to raise funds through debt this financial year. In January 2024, SBI successfully raised 50 billion rupees (about $600 million) by issuing surplus Basel III-compliant Tier I bonds.
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This article has been covered by Ms. Swara Kekatpure, a finance student at NMIMS University, Mumbai. She carefully analyses businesses in detail and ensures her work incorporates honesty, integrity, and unwavering dedication.
