State Bank of India, the country’s top lender, announced on Friday its plans to raise up to $6 billion through debt instruments in the financial year 2024. This comes as the bank aims to strengthen its balance sheet and meet its growing credit demand.
State Bank of India has been weathering the COVID-19 pandemic by focusing on digital transformation, cost control, and asset quality management. The bank’s net profit increased by 81.2% year-on-year in the quarter ending on December 31, 2020, due to lower provisioning for bad loans.
As per recent reports, the bank’s bad loans have reduced significantly, and it is expected to benefit from the economic recovery post the pandemic. The bank plans to use the funds raised through debt instruments to expand its lending business in the growing Indian market.
The bank has been proactive in raising funds through debt instruments. In December 2020, it raised $600 million through a bond issue, and in January 2021, it raised $1.25 billion through a foreign currency bond issue.
State Bank of India‘s strategic use of debt instruments and conservative lending practices have made it one of the most reliable banks in India. Its continued focus on digital transformation and cost control measures have enabled it to weather the pandemic’s impact and emerge stronger.
In conclusion, State Bank of India‘s plans to raise up to $6 billion through debt instruments in the financial year 2024 exemplifies its proactive approach to capital raising and its confidence in the Indian market‘s growth potential. The bank’s commitment to cost control, asset quality management, and digital innovation has positioned it to thrive in the post-pandemic economy.
