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State Bank of India (SBI) on Thursday said it will focus on raising funds by introducing up to ₹10,000 crore in infrastructure bonds. This will also have a green boot option ₹5,000 crore, the bank said in a regulatory filing.
The fundraising, if approved, will be through a public issue or private placement in 2023, SBI said.
“To approve the raising of Infrastructure Bonds up to an amount of Rs. 10,000 crores (including a green belt option of Rs. 5,000 crores) through public issue or private placement, during FY23,” the bank’s statement read.
The lender also said its executive committee of the central board will meet on November 29 to review the fundraising.
Recently, SBI Chairman Dinesh Kumar Khara told reporters that the bank expects to maintain its current pace of loan growth while aiming to keep its net lending ratio below 1%.
After announcing its September quarter results, SBI said it expects credit growth of 14%-16% for the current financial year as it steps up efforts to attract deposits.
The bank has a term loan pipeline ₹2.5 lakh crore and expects demand from all sectors.
The borrower’s net non-performing loan (NPA) ratio fell to 0.8% in the June-September quarter.
The SBI chief also said the bank hopes to further reduce bad loans, and keep the rate below 1%.
Analysts had earlier said that Indian banks would continue to issue funds, including infrastructure bonds, in the next few months as they rush to meet rising credit demand and keep funds at cheaper rates.
According to RBI data, in the 14 days ended November 4, credit growth of Indian banks was 17%. The deposit growth was 8.25 percent.
Shares of SBI were higher by 0.32% ₹609.60 each on NSE today.
With agency transactions
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