SBI signs MoU with Luxembourg Stock Exchange - Check how it will help State Bank of India and LuxSE

India’s largest lender, State Bank of India (SBI) has signed a memorandum of understanding (MoU) with the Luxembourg Stock Exchange (LuxSe). The MoU will help SBI and LuxSE to set up a long-term cooperation mechanism and promote ESG (Environmental, Social, and Corporate Governance) and green finance. 

Through this MoU, the Luxembourg Stock Exchange would work towards creating a sustainable environment for issuers, asset managers, and investors in terms of ESG focused funds and bonds. 

Commenting on SBI entering into MoU with Luxembourg Stock exchange, Dinesh Khara, Chairman, SBI said “Bank has adopted ‘Sustainability’ as one of its core values. A “Sustainability and Business Responsibility Policy” for the Bank has been put in place and SBI was the first Public Sector Bank in India to publish its Sustainability Report as per Global Reporting Initiative (GRI) framework. State Bank of India has raised USD 800 Mio in the Green Bond Market to date. The MoU with the Luxembourg Stock Exchange will open up new avenues for market development and fundraising in the green bond market.”

Earlier, State Bank of India had reported a rise of 51.88 per cent in its standalone net profit for Q2FY21 on a year-on-year basis. Accordingly, the lender's net profit increased to Rs 4,574 crore from Rs 3,012 crore reported for the corresponding period of the previous fiscal. Besides, the Net Interest Income (NII) increased to Rs 28,181 crore in Q2FY21 from Rs 24,600 crore in Q2FY20, an increase of 14.56 per cent YoY.

"The bank has delivered a strong performance in Q2FY21 with all-round improvement in 'Profitability, Capital Adequacy and Provision Coverage Ratio, including Additional Provision over Minimum Regulatory Provisions' required," the SBI said in a statement.

However, the bank's non-interest income (excluding one-off items) remained flat at Rs 8,528 crore from Rs 8,538 crore earned during Q2FY20.