SBI Board Okays Fund Raising Of Rs 50,000 Cr Via Debt Instruments, Buy Or Sell?

State Bank of India on Friday obtained green signal from its board to raise approximately Rs 50,000 crore via debt instruments, as per its BSE filing. Meanwhile, SBI shares witnessed a decline of 1.68% to end at Rs 578.60 per share. SBI share gave maximum 213% return in last 3-years. Check details below:

SBI Gives Nod To Fundraising Of Rs 50,000 Cr Via Debt Instruments: As per the BSE filing of SBI, "The Central Board of the Bank has, inter alia accorded approval for raising funds in INR and / or any other convertible currency by issue of debt instruments including but not limited to Long Term Bonds, Basel III compliant Additional Tier 1 Bonds, Basel III compliant Tier 2 Bonds, upto an amount of Rs 50,000 crores (Rupees Fifty Thousand Crores only) through private placement mode to Indian and/or Overseas investors during FY24, subject to GOI approval wherever required."

Earlier, a memorandum on raising funds by issuance of debt instruments (including capital instruments) was placed before the Central Board of the Bank, today i.e. 9.6.2023.

SBI Stock Performance & Return: The 52-week high price of SBI share is Rs 629.65 per share and 52-week low price is Rs 430.80 apiece, respectively. Last trading price is Rs 578.60 apiece. Its market capitalisation is Rs 5,16,378.05 crore. In last 1-year, SBI share delivered 24% return, 37% return in last 2-years, and 213% return in last 3-years.

SBI Share Gets Buy Call: ICICI Direct, in its brokerage report dated May 19, 2023, recommended buy call with target price of Rs 725 per share. If you buy SBI share at last trading price of Rs 578 apiece, you can fetch potential return of 25%.
According to ICICI Direct, "SBI has demonstrated its strength in the last few quarters both on core operating performance and asset quality. Management confidence on growth, maintenance of margins and return ratios reaching >1% RoA in coming years too warrant a re-rating, which is long due and should see strong positive momentum. Plough-back of profits leading to improving RoE of ~16-17% further adds to valuation. We reiterate BUY rating on the stock."

Meanwhile, KR Choksey, in its May 20 report, has also assigned buy call to SBI stock with target price of Rs 750 per share and potential return of 30%.