SBI's Board Approves Fund Raising Plans; Shares Fall

On Thursday, the State Bank of India's (SBI) board approved its plan to raise funds up to $1.5 billion.

"Executive committee of the Central Board in its meeting held today on 11th June 2020 inter alia approved the following "to examine the status and decide on long term fund raising in single/multiple tranches up to US$ 1.5 biilion (US$ one and a half billion) under Reg-S/144A through public offer and/ or private placement of senior unsecured notes in US Dollar or any other convertible currency during FY 2020-21," the public sector bank informed the stock exchanges.

Post the announcement, shares of SBI fell 2.5 percent to an intraday low of Rs 183.05.

Recently, the lender issued a recruitment notice for the post of Chief Financial Officer (CFO) on contract basis at a salary package of Rs 1 crore, three times more than its chairman's.

This is for the first time, the bank is recruiting the CFO from outside its experienced talent pool of top management. Earlier, the CFO used to be from the bank's senior management. Currently, the CFO position is held by Chalasani Venkat Nageswar, a Deputy Managing Director of the bank.