India’s largest public sector bank, State Bank of India (SBI), is all set to report its March 2020 quarter result (Q4FY20) on Friday, June 5. The bank has also informed that its board will meet on June 11 to consider raising funds in single or multiple tranches of up to $1.5 billion. The bank expects to raise funds during 2020-21 through a public offer, a private placement of senior secured notes in U.S. dollar or any other convertible currency.
What it means
There is a general positive expectation about the bank’s net profit, and the same is expected to jump on a year-on-year (YoY) basis. SBI Cards stake sale, worth Rs 3,000 crore, may support profitability. However, loan growth is expected to be muted. NPA levels and provisioning made for the same will also be keenly watched in the results tomorrow. In a major restructuring exercise, SBI has created a separate Financial Inclusion and Micro Market (FI&MM) vertical with a focus on rural and semi urban areas. It is expected that under this newly launched vertical, the bank will offer loans mainly for agriculture as well as allied activities, and micro and small enterprises causing movement in loan growth in the days to come.