The Executive Committee of the board of India's largest lender State Bank of India will meet on May 20 to consider raising $3 billion, or close to Rs 25,000 crore, during this financial year through a public offer, or private placement of debt, or both, the company informed on May 14.
"...a meeting of the Executive Committee of the Central Board of the Bank will be held on Tuesday, 20th May 2025 at Mumbai, inter-alia, to examine the status and decide on long term fund raising in single / multiple tranches of up to $ 3 Billion under Reg-S/144A, through a public offer and/or private placement of senior unsecured notes in US Dollar or any other major foreign currency during FY 2025-26," the statement said.
If finally approved, this would be the first equity raise by the PSU lender in seven years.
The board of SBI had on May 3 okayed the plan to raise equity capital of up to Rs 25,000 crore in one or more tranches during FY26 through a Qualified Institutional Placement (QIP), or Follow on Public Offer (FPO), or any other mode. The final approval will be given by the government or the Reserve bank of India.
The chairman, CS Setty had said during the fourth quarter earnings call that the uncertainty over tariffs will impact the economy and the investment scenario. "Without raising capital, the bank's growth will not be impacted. Benign asset quality is likely to continue for more period," SBI Chairman CS Setty said.
"The bank has adequate capital to support growth at the current capital adequacy levels," the chairman added. SBI's proposal for a fund raise comes at a time other private sector lenders, including Axis Bank and IDFC First Bank, have sought to raise capital.
Read More: Warburg Pincus, ADIA to invest up to Rs 7,500 crore in IDFC First Bank
For FY25, the bank reported 16 percent rise in net profit on a standalone basis at Rs 70,901 crore as against Rs 61,077 crore in the previous year. The bank said it is confident of a credit revival, but expects 12-13% loan growth in FY26, similar to FY24 levels.
SBI's loan growth for home loans and small-medium enterprises lending is expected remain strong this year, the bank said, even as corporates continue to assess the impact of tariff on demand and growth outlook. The bank also said it will continue to tap the debt market through additional Tier-I and infrastructure bond issuances.
Despite tariff-related uncertainty, the Nifty Bank has been higher by 7 percent so far this year, outperforming Nifty's 4 percent rise on a YTD basis.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
