New Delhi: State Bank of India’s (SBI) shares are in focus today as the state-run bank’s board approved the issue of Rs.20,000 bonds that will be launched during this financial year. Aimed to support loan growth and regulatory compliance, these bonds will be Basel III compliant and issued domestically in Indian Rupees.
In May this year, the bank had announced the launch of a share sale to institutional investors to raise Rs.25,000 crore at a floor price of Rs.811.05 per equity share, a 2.3% discount to the last closing price of Rs.830.5 on the NSE. This QIP, the first issued by SBI since 2017 was launched on July 16, seeing a strong interest amongst investors, with a 3x oversubscription. Considering SBI’s total market cap of Rs.7.4 lakh crore, this QIP fund raise represents a 3.3% equity dilution.
This has been the largest equity dilution of its kind in the Indian market, second only to Coal India’s Rs.22,560 crore issue in 2015. In June 2017, the bank had raised Rs. 15,000 crore by selling 522 million shares through QIP.
SBI’s net interest income, or the difference between the interest earned and the interest income spent, has increased to Rs.42,774.63 crore in QIFY26 as against Rs.41,655.19 crore in the same period last year.
SBI’s shares are trading at Rs.828 a piece on the National Stock Exchange
