The funds are meant to meet the increasing demands of the domestic ESG financing market and follow the Bank's successful raise of $1 billion in syndicated social loan funds last year
The State Bank of India (SBI) confirmed that it has raised $1 billion (approximately Rs 8,300 crore) to bolster the domestic ESG financing market. The bank has completed the issuance of a Syndicated Social Loan worth a total of $1 billion. The loan comprised $750 million and a green shoe of $250 million.
On January 2, the loan book was closed. This comes on the heels of the bank's raise of $1 billion in syndicated social loan funds last year. The funds are meant to meet the increasing demands of the domestic ESG financing market.
The loans are of three- and five-year tenures, at 80 and 100 basis points over the secured overnight financing rate (SOFR). The SOFR, a replacement for the London Interbank Offered Rate (Libor), is a benchmark rate for dollar-denominated derivatives and loans.
In the second quarter ending September 30, 2023, SBI reported an 8 percent increase in net profit, amounting to Rs 14,330 crore. The net interest income (NII) witnessed a notable surge of 12.3 percent, reaching Rs 39,500 crore compared to the corresponding period in the previous year.
Regarding asset quality, the gross non-performing assets ratio stood at 2.55 percent as of September 30, showing improvement from 3.52 percent in the same period the previous year and 2.76 percent in the first quarter of the current fiscal.