SBI Card, a leading financial institution, has announced its intention to raise a substantial amount of ₹3,000 crore through the issuance of debentures. This strategic move aims to support the company’s ongoing business expansion. The decision regarding this capital raising endeavor will be made during the upcoming board meeting scheduled for June 5. SBI Card disclosed this information in a regulatory filing.
The fundraising process will involve private placement of the debentures in one or more installments over a specific period of time. SBI Card has been recognized as one of the top financial choices in the insurance sector by renowned global investment banking firm Jefferies.
Jefferies has expressed its favorable outlook on various stocks, particularly highlighting Bajaj Finance, SBI Card, Cholamandalam Investment, and Can Fin Homes within the non-banking financial companies (NBFCs) sector. Additionally, the foreign brokerage has a positive sentiment towards ICICI Bank, Axis Bank, and IndusInd Bank in the banking domain. From the insurance sector, Jefferies has identified HDFC Life and SBI Life as its preferred picks, as stated in their note on May 30.
Although banks anticipate a slowdown in credit growth and net interest margin (NIM), Jefferies emphasizes their confidence in maintaining quality and return on equity (ROE). On the other hand, NBFCs anticipate robust growth in consumer loans, while wholesale-NBFCs plan to diversify their loan portfolios.
SBI Card’s strategic move to raise funds through debentures underscores its commitment to fostering sustainable growth and capitalizing on emerging opportunities in the financial landscape.
About SBI Card:
SBI Cards & Payment Services Ltd., formerly recognized as SBI Cards & Payment Services Private Limited, is a prominent credit card issuer and payment solutions provider operating in India. Established in October 1998 as a joint venture between State Bank of India and GE Capital, SBI Card has established itself as a key player in the financial services sector of the country.
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