State Bank of India (SBI), the country’s largest bank, is planning to raise fresh capital in the current financial year. According to a stock exchange filing on Tuesday, SBI’s board will meet on May 3 to discuss options such as a follow-on public offer, a rights issue, or a qualified institutional placement. However, the exact amount they aim to raise has not been shared yet.
This move follows similar fundraising plans by private banks. Recently, Axis Bank approved a $6.4 billion fundraise through a combination of equity and debt, while IDFC First Bank secured $877 million from major investors like Warburg Pincus and Abu Dhabi Investment Authority. SBI’s fundraising plan comes at a time when banking stocks in India are performing strongly, supported by growing investor confidence. The bank is also set to announce its fourth-quarter results for the year ended March 31 this Saturday.
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