SBI board approves $2-billion fund-raising plan for FY22
The Executive Committee of the Central Board approved the plan on April 28, the bank has said.
April 28, 2021 / 01:40 PM IST
SBI said, "This digital initiative powered by Artificial Intelligence (AI) and Facial Recognition Technology is a contactless and paperless process."
State Bank of India (SBI) board on April 28 approved a proposal to raise up to $ 2 billion, the lender informed the stock exchanges. The executive committee of the central board approved the plan at its meeting on April 28, the bank said.
The board approved "long-term fund-raising in single / multiple tranches up to US$ 2 Billion (US$ Two Billion) under Reg-S/144A, through a public offer and / or private placement of senior unsecured notes in US Dollar or any other convertible currency during FY 2021-22," the bank said.
The bank in January concluded the issuance of $600 million (about Rs 4,500 crore) from bonds to fund the expansion of the overseas business. Funds were raised through senior unsecured fixed rate notes with maturity of five and a half years years and coupon of 1.80 percent payable semi-annually under Regulation-S, SBI said.
The stock was trading at Rs 363.70, up 3 percent, from the previous close.
Brokerages expect SBI to post good numbers in the fourth quarter. According to Prabhudas Lilladher, State Bank of India is likely to report net profit at Rs 1,419.3 crore, up 180.2 percent year-on-year (YoY) and 33.8 percent quarter-on-quarter (QoQ).
Net Interest Income (NII), the difference between interest earned and interest expended, is expected to increase by 16.3 percent YoY and 2 percent QoQ to Rs 7,904.4 crore, it said. Pre-Provision Profit (PPP) is likely to rise by 11 percent YoY and 1.7 percent QoQ to Rs 5,684.1 crore.
Sharekhan expects net profit at Rs 6,540 crore, up 82.6 percent YoY and up 27.4 percent QoQ. NII is expected to increase by 30.7 percent YoY and 3.2 percent QoQ to Rs 29,751 crore, the brokerage has said. PPP is likely to rise by 15.9 percent YoY and 5.6 percent QoQ) to Rs 15,733.8 crore, the brokerage said.