State Bank of India to raise USD1.5 billion after its quarterly profit plunged
The State Bank of India (SBI) on Friday said that it will raise up to INR95.76 billion (USD1.53 billion) through a share sale to institutional investors or a follow-on public offer. A report by the Times of India also said the Indian multinational bank plans to raise another INR20 billion through sale of shares to the government on a preferential basis.
According to the report, SBI posted its steepest quarterly profit fall in more than two years in the three months to September due to increasing non-performing loans. This pressured the country's largest lender to raise funds quickly.
SBI chairwoman Arundhati Bhattacharaya announced earlier that the bank plans to raise the funds, including INR50 billion through bonds, before March 31, Times of India said.
The Mumbai-based government-owned corporation has a total of INR15,66,261 crore (USD392.5 billion) assets under management as of last year. It generated a revenue or INR200,560 crore (USD36.9 billion) during the same period, based on its latest annual report.
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