State Bank of India to Raise Up to $3 Billion Through Debt in Fiscal Year 2025

State Bank of India, the largest lender in the country, has announced that its board has approved raising up to $3 billion through debt in the current financial year. The state-owned bank plans to secure these funds in one or multiple tranches through either a public offering or private placement of senior unsecured notes. According to the bank, these notes will be denominated in US dollars or another major foreign currency.

The purpose for which the proceeds will be utilized was not specified by the lender. This action is taking place as Indian banks strengthen their capital base to meet the growing demand for loans. Additionally, several state-run lenders, including Canara Bank, Punjab and Sind Bank, and Punjab National Bank, have revealed their intentions to raise funds through debt in the ongoing fiscal year.

In January, SBI raised 50 billion rupees by issuing Basel III-compliant additional tier-I perpetual bonds. Chairman Dinesh Kumar Khara mentioned last month that the lender is contemplating raising equity capital to strengthen growth initiatives.

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