SBI approves Rs 25,000 crore fundraising plan via issue of Tier 1 and Tier 2 bonds

The board of India's largest public sector lender State Bank of India, on Saturday, approved a proposal for raising funds of up to Rs 25,000 crore via the issue of Tier 1 and Tier 2 bonds. The bonds will be Basel-lll compliant and SBI plans to raise the amount in INR/USD.

The fundraising plan was announced by SBI along with its April-June quarter earnings where the lender reported a standalone net profit of Rs 17,035 crore, up by 0.9% over Rs 16,884.29 crore reported in the year-ago period. It was higher than the Street's estimates of Rs 16,786 crore.

The interest earned during the reported quarter stood at Rs 1,11,526 crore, which was higher by 16% versus Rs 95,975 crore reported in the corresponding quarter of the last financial year.


Interest expended by the bank in the April-June quarter stood at Rs 70,401 crore versus 57,041 crore a year ago. This translates into a 23% YoY uptick.

The operating profit for the state lender in the reported quarter was at Rs 26,449 crore, up by 4.55% on the YoY basis. SBI's gross advances in the said quarter surged by 15.39% to Rs 38,12,087 crore in Q1FY25 versus Rs 33,03,731 crore in Q1FY24.

Total deposits grew by 8.18% on the YoY basis to Rs 49,01,726 crore as against Rs 45,31,237 crore in the year ago period. Bank's PCR was also down by 41 bps in the quarter gone by at 74.41% versus 74.82% in the year ago period.

SBI's gross NPAs were down by 55 bps on the YoY basis and 3 bps on the QoQ basis at 2.21%.