SBI board approves to raise up to Rs 20,000 crore via long-term bonds

On Wednesday, the State Bank of India (SBI) announced its plan to raise up to Rs 20,000 crore through long-term bonds via public issue or private placement during the current financial year (FY25). This decision aligns with efforts by Indian banks, including SBI, to bolster their capital reserves amidst growing loan demands. 

Earlier in FY25, SBI had already raised Rs 5,000 crore through perpetual bonds at an 8.34 per cent coupon rate. The bank's proactive measures come on the heels of a strong financial performance in the January-March quarter of FY24, where it reported a 24 percent rise in net profit to Rs 20,698 crore and improved asset quality with GNPA declining to 2.24 percent.