Largest & Oldest Bank Of India Plans to Raise Up to USD 3 Billion in FY 2025–26 After Mixed Q4 Results
Despite recent gains of 9.55 per cent over the past three months, the stock has delivered a negative return of 12.47 per cent over the last 12 months.
State Bank of India (SBI), the country’s largest public sector lender, has announced plans to raise long-term funds of up to USD 3 billion in the financial year 2025–26. This fundraising initiative will be discussed in a meeting of the Executive Committee of the Central Board scheduled for Tuesday, May 20, 2025, in Mumbai. The bank may raise the funds in single or multiple tranches through instruments such as senior unsecured notes. These notes could be issued either by public offer or private placement and denominated in US Dollars or other major foreign currencies.
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As of 10:30 AM IST, the share price of SBI was trading at Rs 801, up 0.16 per cent from the previous close. During intraday trading, the stock reached a high of Rs 805.95 and a low of Rs 795. Despite recent gains of 9.55 per cent over the past three months, the stock has delivered a negative return of 12.47 per cent over the last 12 months. The stock belongs to the Large-Cap segment and is widely followed by both retail and institutional investors.
In its Q4FY25 financial results, SBI reported interest income of Rs 1,19,666 crore, up 7.77 per cent year-on-year. However, net profit declined by 9.93 per cent to Rs 18,643 crore during the same quarter. For the full fiscal year 2025, the bank’s total interest income stood at Rs 4,62,489 crore, with net income at Rs 70,910 crore. These Quarterly Results indicate a mixed performance, with revenue growth offset by pressure on profitability.
The bank’s asset quality showed signs of improvement, with net non-performing assets (NPAs) falling to 0.47 per cent in Q4FY25 from 0.57 per cent a year ago. Gross NPAs declined to 1.82 per cent, down 42 basis points year-on-year. However, provisions for bad loans surged significantly to Rs 6,442 crore, up 300 per cent from Rs 1,610 crore in the same quarter last year.
SBI remains a systemically important institution with an asset base of Rs 66,20,674 crore as on December 31, 2024. It holds the largest market share in both advances and deposits within the Indian banking sector. The Government of India continues to be the major shareholder with a 57.43 per cent stake. The bank operates through a widespread network of over 22,740 domestic branches, 65,000 ATMs, and 245 international offices across 29 countries.
As SBI considers new fundraising efforts, market participants will closely monitor any developments, particularly those affecting the bank's capital adequacy and future earnings. The move also comes amid an environment where Indian banks are focusing on strengthening their capital base to support credit growth and maintain regulatory buffers.
Disclaimer: The article is for informational purposes only and not investment advice.