The bank is expected to report a healthy March quarter profit as the recent SBI Card IPO is likely to cushion the bank’s NPAs to some extent.

While March quarterly results are expected to be healthy for SBI, it has started off the current fiscal on a rough note due to the ongoing coronavirus situation in the country. (Photo: Reuters)

Shares of India’s largest public lender State Bank of India (SBI) climbed ahead of its March quarterly results, expected later in the day.

While SBI shares touched nearly four per cent earlier in the morning, the stock has shed some gains. At 11:44 am, SBI shares were trading 2.8 per cent higher or at Rs 178.95 per share.

The bank is expected to report a healthy March quarter profit as the recent SBI Card IPO is likely to cushion the bank’s NPAs to some extent.

While March quarterly results are expected to be healthy, SBI has started off the current fiscal on a rough note due to the coronavirus situation in India. In fact, most financial institutions and banks are facing a crisis due to the ongoing economic slowdown.

A Business Today report suggests that between April 1 and June 2, the bank’s share value has fallen as compared to the steady rise in benchmark index Nifty over the past few days.

The report also suggests that SBI’s board will meet on June 11 to consider raising funds in single or multiple tranches totalling up to $1.5 billion. The public lender said it will raise funds in FY21.

SBI disclosed the details about the fundraising plan in a recent regulatory filing.

“To examine the status and decide on long term fundraising in single/multiple to US$ 1.5 Billion (US$ One and a Half Billion) under Reg-S/144A, through a public offer and/or private placement of senior unsecured notes in US Dollar or any other convertible currency during FY 2020-21,” SBI said in the regulatory filing.

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