The bank has finalised the Syndicated Social Loan issuance, totalling USD 1 billion (comprising USD 750 million and a green shoe option of USD 250 million), as stated in an official filing by SBI 

State Bank of India (SBI) declared on Wednesday that it had successfully obtained USD 1 billion, or around Rs 8,300 crore, to meet the increasing demand for ESG finance in the country. According to a regulatory filing, the bank completed the issuing of this sizeable sum, which consists of USD 750 million and an additional USD 250 million through a Syndicated Social Loan. This is an attempt to follow up on SBI’s previous year’s effort to raise a comparable sum through a syndicated social loan.

The money raised by means of this latest endeavour is designated for the rapidly expanding domestic Environmental, Social, and Governance (ESG) funding sector. A three-year and a five-year loan were the two tenures used in the fundraising plan. Significantly, these funds were obtained at rates that were 80 basis points and 100 basis points lower than the secured overnight financing rate (SOFR), which serves as a benchmark for loans and derivatives denominated in dollars. The London Interbank Offered Rate (Libor) has been superseded by SOFR.

Prioritising fiscal development, the bank skillfully negotiated the financial landscape until closing the loan book on 2 January 2024. With a net profit of Rs 14,330 crore for the second quarter that ended on 30 September 2023, SBI reported an 8 per cent increase. When compared to the same quarter last year, the net interest income (NII) for the same period increased significantly by 12.3 per cent to Rs 39,500 crore.

Examining asset quality, as of 30 September, the gross non-performing assets (NPA) ratio was 2.55 per cent, a noteworthy decrease from 3.52 per cent during the same period last year and 2.76 per cent during the first quarter of the current fiscal year. This financial move by SBI demonstrates its dedication to managing the changing financial environment and attaining favourable outcomes for key performance metrics.