SBI to raise $3 billion in overseas debt

State Bank of India (SBI), the country’s largest lender, plans to raise around $3 billion in overseas debt in the current financial year, to finance its lending programme. SBI expects its loan portfolio to grow around 16 per cent this fiscal.

SBI plans to raise the debt in one or two tranches, either through public offer or private placement of senior unsecured notes, denominated in US dollar or any other major international currency, the lender stated.  

SBI, which accounts for a fifth of the banking transactions in India, said its board of directors has approved the plan to raise around $3 billion in debt in the current financial year, either in single or multiple tranches.

SBI’s foreign currency bonds are considered as one of the safest among debt instruments in India and have the stature or quasi-sovereign debt for foreign investors.

Also, SBI has been faring well with a 24 per cent year-on-year increase in its net profit at Rs20,698 crore for fiscal fourth quarter ended 31 March 2024. 

Net interest income (NII), the difference between interest earned and interest spent, also rose 3.13 per cent to Rs41,655 crore during the quarter. Net interest margin was lower at 3.47%.

SBI also reported an improvement in asset quality with gross non-performing assets (NPA) ratio declining 54 bps YoY to 2.24 per cent and net NPA ratio falling 10 bps to 0.57 per cent during the quarter.