SBI Raises 10,000 Cr rupees Via Infra Bonds
India's largest lender State Bank of India on Wednesday said that it has raised 10,000 crores at a coupon rate of 7.36%, so its 5th infrastructure bond issuance. The SBI bond issue was poor, subscribed by around four times against the base issue size of 5000 crores. It attracted bids in excess of 19,884 kilo rupees. The total number of bids received was 143, indicating wider participation and heterogeneity. Investors ranging from Provident funds, pension funds, insurance companies, mutual funds and corporations participated in the infrastructure bond issuance. The bank said that the fund raised will be utilized in enhancing long term resources of SBI and boosting investments in infrastructure and affordable housing segments. In a statement, the bank mentioned an I quote. Based on the response, the bank has decided to accept rupees 10,000 crores in a coupon rate of 7.36% payable annually for the 10 year of 15 years. This represents a spread of 21 basis points over the corresponding FBILG SEC PA curve. With the current issue is, the total outstanding long term bond issued by the bank is at rupees 49,718 crore rupees. The issue ends is also very significant as the bank has been successful in raising long division bonds successfully. Indias largest public sector bank bonds have been rated AAA with a stable outlooks by India Ratings and ICRA. As of March 2024, Sbi's deposit base was at 49.16 lakh crore with a Casa ratio of 41.11% and advance of more than 37.67 lakh crores. SBI holds a market share of 26.5% and 19.8% in home and auto loans respectively. What do you make out of this entire development? Please let us know in the comments section. Stay tuned to Livement for more such updates.