SBI Looking Forward to Raise $5 Bn in Offshore Loans

SBI Looking Forward to Raise $5 Bn in Offshore LoansState Bank of India is known as the country's largest lender, which seems to grow higher with its new plans of raising $5 billion through offshore loans by December, announced by the company officials on Friday.

To initiate for the plans, SBI officials also held a meeting with Finance Minister Mr. Pranab Mukherjee and Chiefs of public sector banks in New Delhi, during which, SBI Chairman Mr. Pratip Chaudhury discussed about their plans and said that according to SBI’s planning, the debt would be raised during the second or the third quarter of this fiscal.

"We hope to raise $ 5 billion debt by December by means of foreign debt through medium-term notes (MTN)", SBI Chairman Pratip Chaudhury told reporters in New Delhi. "Right now, we have a total objective of $5 billion, but we would like to time the market in the second and third quarters. We will be raising the funds, but there has to be visibility of credit growth. If there is demand for assets, we will go and raise it", Chaudhury further added in his statement.

SBI is definitely not lacking behind in confidence and is putting in, its best efforts to maintain the bank’s net interest margin (NIM) i. e. company's investments returns relative to its interest expenses, at 3.5% this fiscal.