SBI stock in focus today on plan to raise $3 billion

State Bank of India (SBI), the country's largest bank, announced on Wednesday it would potentially raise $3 billion through either a public offer or private placement in the current fiscal year. The Executive Committee of SBI's Central Board is scheduled to convene on May 20 to discuss the fundraising options.

In its regulatory filing, SBI noted that the committee will assess the current situation and decide on a long-term fundraising strategy, which may involve single or multiple tranches of up to $3 billion through senior unsecured notes, either in US dollars or another major foreign currency, during FY 2025-26.

SBI shares closed at Rs 800.35, reflecting a 0.19% decrease on Wednesday. Market cap of the lender stood at Rs 7.14 lakh crore. 

"We advise that a meeting of the Executive Committee of the Central Board of the Bank will be held on Tuesday, 20th May 2025 at Mumbai, inter-alia, to examine the status and decide on long term fund raising in single / multiple tranches of up to US$ 3 Billion (US$ Three Billion) under Reg-S/144A, through a public offer and/or private placement of senior unsecured notes in US Dollar or any other major foreign currency during FY 2025-26," said SBI. 

In its recent report for the fourth quarter ended March 2025, SBI disclosed a 10% decrease in standalone net profit, amounting to Rs 18,643 crore, compared to Rs 20,698 crore for the same period in 2023-24. However, total income rose to Rs 1,43,876 crore from Rs 1,28,412 crore year-over-year, with interest income reaching Rs 1,19,666 crore, up from Rs 1,11,043 crore a year earlier.

On a consolidated basis, SBI's net profit for the quarter was down by 8% at Rs 19,600 crore, compared to Rs 21,384 crore in the same timeframe last year. Total income, however, increased to Rs 1,79,562 crore, up from Rs 1,64,914 crore. For the 2024-25 financial year, SBI reported a 16% rise in standalone profit to Rs 70,901 crore, compared to Rs 61,077 crore from the previous year.