2024-07-14 17:10:16
New Delhi: The country’s largest public sector bank, State Bank of India (SBI), has raised Rs 10,000 crore. The bank has raised this money through its sixth infrastructure bond at a coupon rate of 7.36 percent. SBI said that this bond received a very good response from investors. Bids of Rs 18,145 crore were received against the initial target of Rs 5,000 crore. SBI said in an exchange filing that a total of 120 bids were received. The investors included provident funds, pension funds, insurance companies, mutual funds, corporates etc. SBI will use this money to strengthen its resources for funding in the infrastructure and affordable housing sector. After issuing these new bonds, the total outstanding long term bonds issued by SBI have become Rs 59,718 crore.
How did the stock perform on Thursday?
On Thursday, SBI’s stock closed 0.88 per cent higher at Rs 856.55 on BSE. According to BSE data, SBI’s stock has gained about 32 per cent so far in 2024. Whereas in the last one year, it has seen a growth of about 43 per cent. Brokerage firm InCred Equities sees potential in SBI’s stock going forward as well.
Target price of Rs 1000
The brokerage firm believes that the stock will show an uptrend due to the good performance of SBI along with MMFS and Shriram Finance and better market penetration. InCred Equities has given an ‘add’ rating to SBI shares and has set its target price at Rs 1,000.
The net profit of the government bank for the January-March 2024 quarter was Rs 20,0698 crore. While its net interest income (NII) was Rs 41,655 crore. Deposits in the bank grew by 11.1 percent from Rs 44.24 lakh crore in the same quarter of FY 2023 to Rs 49.16 lakh crore in the January-March quarter of FY 2024.
Disclaimer: The suggestions given in this analysis are those of individual analysts or broking companies, not of NBT. We advise investors to consult certified experts before making any investment decision. As stock market conditions can change rapidly.