SBI board approves raising Rs 10,000 crore via infrastructure bonds

State Bank of India: State Bank of India Q2 profit jumps 74% YoY to Rs 13,265 crore on decline in loan loss provisions. NII rises 13%. The country's largest bank reported highest ever quarterly net profit at Rs 13,265 crore, growing 74% YoY as loan loss provisions fell sharply by 25% during the same period. Its operating profit for Q2FY23 at Rs 21,120 crore increased 16.82% YoY and net interest income rose by 12.83% YoY to Rs 35,183 crore with loan book growing 20% and deposits rising 10% in the same period.

State Bank of India (SBI) approved raising Rs 10,000 crore through infrastructure bonds during the financial year 2023, the lender said in an exchange filing.

"Raising Infrastructure Bonds up to an amount of Rs. 10,000 crores (including a green shoe option of Rs. 5,000 crores) through a public issue or private placement, during FY23," the release said.

On November 24, the SBI's Executive committee of the Central Board consider raising funds through the issuance of infrastructure bonds worth up to Rs 10,000 crore during FY23.

SBI's Chairman Dinesh Kumar Khara last week said that the lender is expected to maintain its asset quality even though loan growth is higher.

In the July-September quarter, SBI's gross non-performing assets (NPA) eased to 3.52 percent from 3.91 percent in Q1FY23 and 4.9 percent in Q2FY22. Similarly, net NPAs dropped to 0.8 percent in September 2022 quarter from 1 percent in June 2022 quarter and 1.52 percent in September 2021 quarter.

The bank also recorded credit growth at 19.93 percent year-on-year in July-September.