State Bank of India, the country’s biggest lender, on Wednesday raised $1.2 billion through a share sale, less than its target of $1.5 billion, Reuters reported, quoting sources with direct knowledge of the deal.
The state-run bank, which accounts for a quarter of the country’s loans and deposits, sold 49.64 million shares to institutional investors at R1,565 each, the report said. SBI had launched the share sale on Tuesday with a price band of R1,565-1,596 a share, a discount of up to 2%. Citigroup, Deutsche, HSBC, JPMorgan Chase, Bank of America, UBS and SBI Capital Markets managed the sale. The bank is strengthening its capital adequacy ratio by selling shares as rising bad loans hurt profitability at the government-run lender. The gross ratio of soured debt to total lending widened to a five-year high of 5.64% in the three months to September 30 from 5.15% a year earlier, SBI had said on November 13.