State Bank of India Signs Rs 8,102 Crore MoU with UK’s FCDO

The State Bank of India was founded on July 1, 1955, and has been successfully operating for the past 69 years. It has 22,219 branches and 62,617 ATMs in India, along with 229 branches in 31 countries internationally.  The State Bank of India (SBI) has signed a non-binding Memorandum of Understanding with the UK’s Foreign, Commonwealth, and Development Office (FCDO) for Rs 8,102 crore, or nearly 750 million pounds.  Both FCDO and SBI will collectively invest matched contributions of Rs 4,052 crore (approximately 375 million pounds) equivalent over a predefined timeline, as per an exchange filing on July 24, 2024.  This agreement, which assures both SBI and FCDO that funds will be used to enhance long-term resources for infrastructure and affordable housing segments, has attracted significant investor interest.  The specific details of the investment and its timeline have not been disclosed yet.  On July 1, 2024, the State Bank of India (SBI) achieved a remarkable milestone with its sixth infrastructure bond issuance, raising Rs 10,000 crore at a coupon rate of 7.36%.

SBI last quarter result:

The SBI had a net profit of Rs 20,698 crore in the March quarter, representing a 23.98% increase from last year’s period. The bank saw a 54 basis point increase in its gross non-performing assets (NPA) ratio to 2.24% year-on-year. Despite this, the net NPA ratio increased by 10 basis points from the previous year to 0.57%. Everyone is awaiting the Q1 FY25 result for the SBI, which is going to be announced on August 3, 2024, for the April-June quarter. 

SBI stock movement:

The SBI stock is showing a slight correction in the market due to today’s market decline, with shares down by only 0.42% and currently trading at a price of Rs. 848.40 per share.

Conclusion: The agreement between the SBI and FCDO will be great for the people to get the house in an affordable manner and attract significant investors too. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities  mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.