State Bank of India to raise Rs 200 billion via long-term bonds in FY25

Last week, SBI also approved raising $3 billion through a public offer or private placement of senior unsecured notes in U.S. dollars or any other major foreign currency.

The State Bank of India will raise the funds through public issue or private placement of bonds. (Reuters)

State Bank of India (SBI), the country’s largest lender, said on Wednesday it will raise up to Rs 200 billion ($2.40 billion) via long-term bonds in the current financial year.

The state-run lender will raise the funds through public issue or private placement of bonds. It did not mention what the proceeds would be used for.

Reuters reported on Tuesday, citing two merchant bankers, that the lender had started discussions with market participants to raise around 100 billion rupees through infrastructure bonds. It was not immediately clear if this infra-bond capital raise is a part of the plan announced on Wednesday.

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Also read | SBI raises MCLR by 10 bps across tenors

Indian banks have been shoring up their capital base to keep up with the rising demand for loans. Several state run-lenders, including Canara Bank and Punjab National Bank, plan to raise funds via debt this fiscal year.

Last week, SBI also approved raising $3 billion through a public offer or private placement of senior unsecured notes in US dollars or any other major foreign currency.

SBI’s shares were trading flat on Wednesday. They have gained 32 per cent so far this year.

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