India’s largest lender, State Bank of India (SBI), has announced a significant capital-raising initiative, with plans to secure up to $3 billion through debt in the current financial year. This decision, approved by the bank’s board, was disclosed in an exchange filing.
The funds will be raised in multiple tranches through a public offering or private placement of senior unsecured notes, denominated in US dollars or other major foreign currencies. “In this regard, pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we submit that the Executive Committee of the Central Board at its meeting held today, i.e., 11th June 2024, has approved, inter alia, to examine the status and decide on long-term fund raising in single/multiple tranches of up to US$ 3 Billion (US$ Three Billion) under RegS/144A, through a public offer and/or private placement of senior unsecured notes in US Dollar or any other major foreign currency during FY 2024-25,” the bank stated.
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While SBI did not specify the intended use of the raised capital, this move aligns with the broader trend among Indian banks to bolster their capital reserves in response to rising loan demands. Other state-run banks, including Canara Bank, Punjab and Sind Bank, and Punjab National Bank, are also planning similar debt-raising measures this fiscal year.
In January, SBI successfully raised 50 billion rupees (approximately $600 million) through the issuance of Basel III-compliant additional tier-I perpetual bonds.
