SBI To Raise $3 Bn Through Debt In The Current Fiscal Year

State Bank of India (SBI), board has cleared a proposal to raise USD 3 billion via debt in FY25. The lender will raise the funds in one or more tranches through a public offer or a private placement of senior unsecured notes in USD or any other major foreign currency.

India's largest public sector bank, SBI, said through an exchange filing that its board has approved raising up to USD 3 billion via debt in the current financial year. In the exchange filing, the state-run lender says

"...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 fundraising in single/multiple tranches of up to USD 3 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", said SBI

However, in the exchange filing the Public sector bank did not mention what the funds will be used for.

This move comes as Indian banks, including SBI, are strengthening their capital reserves to cater to increasing demands for loans.

Many Public Sector Unit banks like Canara Bank, Punjab National Bank, and Punjab & Sind Bank, also plan to raise funds via debt in the current fiscal year.

SBI raised Rs 5000 crore in January this year by selling Base III-compliant additional tier-I perpetual bonds.

SBI Chairman Dinesh Khara said last month that the bank is also open to raising equity capital to support growth

Several other state-run banks, including Canara Bank, Punjab and Sind Bank, and Punjab National Bank, also have plans to raise funds through debt this fiscal year.

State Bank of India's share price was trading up 0.34 per cent at Rs 834.65 at 2:56 pm on NSE. (ANI)