Banks

SBI eyes $1.5 bn fund raising from foreign bonds

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sbi-kNEF--621x414@LiveMint-k10E--621x414@LiveMintWith an aim to fund its expansion plan and pay off securities maturing in this fiscal, State Bank of India (SBI) is contemplating to raise $1.5 billion from foreign markets via bonds.

SBI’s executive committee would take a final call on this matter in a meeting scheduled on June 29, SBI informed BSE.

Country’s largest lender registered a net profit of Rs 3,742.02 crore in the corresponding January-March quarter of the previous fiscal (2014-15).

The board would assess the status and decide on long-term fund-raising in single or multiple tranches of up to $1.5 billion through a public offer or private placement of senior unsecured notes in dollars or any other convertible currency during 2016-17, it said.

Senior SBI official said part of fund raising would be under Medium Term Note. Money would be deployed to business growth of overseas offices and prepare for repayment wheere old securities are maturing.

For the fourth quarter ended March 2016, the country’s largest lender posted 66 per cent slump in standalone profits to Rs 1,263.81 crore, as it more than doubled the provisions for bad loans.

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