SBI plans to raise Rs. 20,000 crore to fund affordable housing

India’s largest lender State Bank of India is planning to raise funds worth Rs. 20,000 crore through long term bonds in a bid to finance infrastructure and affordable housing in the domestic space as well as the overseas market. The bank had earlier proposed a fund raise of Rs. 5,000 crore for the same purpose.

Recently, the bank had also announced its plans to raise capital worth Rs. 12,600 crore or US$ 2 billion through issuance of bonds in US Dollar or other convertible currency over the next two fiscal years in the wake of financing its overseas expansion. According to the bank, the funds will be raised by public offer and private placement of senior unsecured notes in US Dollar or any other convertible currency. The bank had also raised funds worth Rs. 8,000 crore in December 2017 to meet the Basel III capital norms.

The bank had posted a 37.69 per cent decline in its net profit to Rs. 1,581.55 crore for the second quarter of fiscal year 2018 on a yearly basis. However, the provisions coverage by the bank increased by 4.80 per cent and its CASA increased by 5.01 per cent during the corresponding period.

Meanwhile, State Bank of India hit an intraday high of Rs. 304.80 per share and an intraday low of Rs. 302.55 per share on Friday. The stock had hit its 52-week high of Rs. 351.50 per share on October 26, 2017 and its 52-week low of Rs. 241.25 per share on October 19, 2017, on BSE respectively.