State Bank of India plans to raise up to $1.5 billion in FY21

State Bank of India (SBI) plans to raise upto $ 1.5 billion to  in fiscal year 2020-21, the bank said in a notification to Bombay Stock Exchange (BSE) on June 4.

The executive committee of the central board will meet on June 11 to consider the proposal of "long-term fund raising in single/multiple tranches through a public offer and/or private placement of senior unsecured notes in US dollar or any other convertible currency during FY20-21", the bank said.

The government has not allocated any capital to state-run banks in this year's Budget. Union Finance Minister Nirmala Sitharaman had said banks will be encouraged to tap markets to raise capital on their own.

Public sector banks will need significant capital in view of the likely pressure on asset quality.