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Saturday, November 27, 2021

SBI raised Rs 4391 crore from overseas bonds, good response from all over the world

SBI’s bond offer has received a better response from all over the world.

SBI International Public Bond: The State Bank of India (SBI) has raised $ 600 million (Rs 4,391 crore) from the Regulation S bond through its London branch at a 1.8% coupon rate. The bond has been benchmarked against the 5-year Treasury bond and its price has been set at a spread of 1.40 per cent. The bond will be listed on SGX-ST (Singapore Exchange – Security Trading) and India INX (India International Exchange). SBI has made a comeback in the international public bond markets after almost two years through it. This is the first public USD bond issue by an Indian scheduled commercial bank since the onset of the Corona epidemic.

Better response from all over the world

This offer of SBI got a better response from all over the world. Its demand was so much that orders worth $ 210 million (15.4 thousand crores) were booked. Due to this demand, its price was reduced by 35 bps, from T + 175 bps to T + bps, that is, SBI got the opportunity for an Indian issuer to issue the lowest coupon for 5.5 years. It is speculated that Moody’s may get a rating of BAAA 3, BBB minus from Standard & Poor’s (S&P) and BBB minus from Fitch. S Venkat Nageshwar, Deputy MD (International Banking Group) of SBI said that even in this environment of high volatility, funds have been raised from investors with a fixed income from all over the world, proving the confidence of global investors in the Indian banking sector. According to Nageshwar, this shows the confidence of global investors in SBI.

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Country’s largest commercial bank

SBI is the largest commercial bank in the country in terms of assets, deposits, branches, customers and employees. Apart from this, it is the largest mortgage lender in the country. As of September 30, 2020, the bank had a deposit base of Rs 34 lakh crore, with a CASO ratio of over 45 per cent and an advance of over Rs 24 lakh crore. The CASO ratio is the ratio of current account and savings account deposits to total deposits and this shows the profitability of the bank. Talking about home loans, SBI has a market share of 34 percent and SBI has 32 percent share in the auto loan segment.

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