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India's largest lender State Bank of India Ltd. has approved raising a sum of Rs 10,000 crore through a public issue or private placement of infrastructure bonds during the current financial year.

The bonds will also include a green shoe option of Rs 5,000 crore.

SBI had informed the exchanges of the board meeting to consider and approve raising infrastructure bonds on November 24.

Also Read: Now, SBI customers can receive pension slip on WhatsApp — Here's how

For the September quarter, the state-run lender reported its highest-ever quarterly profit of Rs 13,265 crore, thereby pipping HDFC Bank to become the most profitable bank of the country after seven years.

Analysts are of the view that SBI, the biggest Indian lender by assets, will need to focus on converting savings into term deposits as banks in the country are under pressure to expand their deposit base while demand for loans rise.

The lender also contributes to the majority of the market capitalisation of PSU Banks, which recently crossed the mark of Rs 10 lakh crore for the first time ever.

Shares of SBI have gained nearly 30 percent this year and analysts tracking the bank expect potential upside of another 10-20 percent over the next 12 months.

State Bank of India's shares are trading 0.2 percent higher at Rs 609.70.

First Published:Nov 29, 2022 2:51 PM IST