India's largest lender State Bank of India has approved the proposal to raise up to $3 billion as long-term fund in single or multiple tranches during FY26, the bank said in an exchange filing on May 20.
The funds will be raised through a public offer or a private placement of senior unsecured notes in US Dollar or any other major foreign currency, or both, said SBI.
"the Executive Committee of the Central Board in its meeting held on 20th May 2025 has approved, inter alia, to examine the status and decide on long term fund raising in single / multiple tranches of up to US$ 3 Billion (US$ Three 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," SBI said in a statement.
The board of SBI had on May 3 okayed the plan to raise 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 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.
SBI's fund raise comes at a time other private lenders such as Axis Bank and IDFC First Bank too have sought to raise capital.
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