State Bank of India (SBI) says its central board has approved a plan to raise up to ₹60,000 crore in debt during FY27. Multiple outlets report that the fundraising will be carried out through a mix of instruments issued in rupees and foreign currencies, including long-term bonds and capital instruments such as AT1 (additional tier-1) and tier-2. The bank links the programme to strengthening its capital base and supporting business expansion amid robust credit growth. The Times of India notes that the plan is among the largest annual fundraising programmes announced by any lender and also points to the potential use of foreign-currency borrowing, with funds expected to be raised via regulatory-approved channels. Reuters-style details on execution timing vary by outlet, but all coverage indicates the amount is an upper limit for the fiscal and that the fundraising remains subject to required government approvals. Sources also recall that in the prior fiscal SBI raised ₹13,551 crore through tier-2 bonds in two tranches and completed a ₹25,000 crore qualified institutional placement, described as a record for the Indian capital market.
SBI Board approves up to ₹60,000 crore fundraising for FY27
State Bank of India (SBI) says its central board has approved a plan to raise up to ₹60,000 crore in debt during FY27. Multiple outlets report that the fundraising will be carried out through a mix of...
- SBI’s board approves a debt fundraising plan of up to ₹60,000 crore for FY27.
- The fundraising is intended to strengthen SBI’s capital base and support business expansion.
- The plan includes a mix of rupee and foreign-currency instruments, including long-term bonds.
- Capital instruments referenced include AT1 and tier-2 bonds.
- The fundraising is subject to required government approvals.
SBI board okays Rs 60k cr fundraise during FY27
2 months agoSBI has been actively tapping the bond market in recent months as part of its capital planning
2 months agoKolkata: State Bank of India said on Thursday its central board has approved plans to raise up to ₹60,000 crore in debt during the current fiscal through issuances in rupee and foreign currencies.This is the largest annual fundraising programme announced by any lender so far and comes at a time when banks are increasingly tapping overseas markets.India's largest lender, with a loan book of ₹49.33 lakh crore, said in a regulatory filing that funds would be raised through a mix of instruments, including rupee and foreign currency long-term bonds, additional tier-1 (AT1) bonds and tier-2 capital.The inclusion of dollar bonds suggests SBI may look to take advantage of the Reserve Bank of India's concessional swap window, which is aimed at boosting foreign inflows and supporting the rupee. HDFC Bank was among the first banks to raise $750 million via external commercial borrowings under the RBI scheme. More banks and public sector units such as Power Finance Corp (PFC), Rural Electrification Corp (REC) and National Bank for Financing Infrastructure and Development (NaBFID) are likely to frontload their external borrowings to take benefit of the central bank facility, with inflows likely to be close to $75 billion, according to Japan's MUFG.131844036The fundraising is aimed at strengthening SBI's capital base and supporting business expansion, particularly as credit growth remains robust.The bank reported 17% loan growth in FY26, while maintaining a capital adequacy ratio of 15.4% as of end-March, with tier-2 capital at 2.07%. The fundraising will be subject to required government approvals. In the previous fiscal, SBI raised ₹13,551 crore through tier-2 bonds in two tranches. It had also completed a ₹25,000 crore qualified institutional placement, the largest in the history of the Indian capital market. Shares of SBI rose 1.6% to ₹1,042.85 apiece on the BSE on Thursday.
2 months agoSBI has been actively tapping the bond market in recent months as part of its capital planning
2 months ago
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