SBI Greenlights $3 Billion Fundraising Plan for FY25 to Power Growth

State Bank of India, the nation’s largest lender, has announced board approval to raise up to $3 billion in foreign currency debt during the financial year 2024-25. The fundraising will be executed in one or more tranches, either through a public offer or private placement of senior unsecured notes denominated in US dollars or other major foreign currencies.

 

This decision was taken at the Executive Committee of the Central Board meeting held on June 11, 2024. The move is part of SBI’s ongoing strategy to strengthen its capital base and support robust credit growth amid rising loan demand across the Indian economy.

 

The bank has not specified the exact use of the proceeds but, like other public sector lenders, is focused on shoring up capital to meet increasing credit requirements. The fundraising will be conducted under international debt issuance regulations (RegS/144A), allowing SBI to tap into global investor pools.

 

SBI’s financial performance remains strong, with a 24% year-on-year jump in net profit for the March 2024 quarter, reaching ₹20,698 crore. The bank’s asset quality continues to improve, with gross non-performing assets dropping to 2.24% and net NPAs to 0.57%. Loan growth has remained robust, marking one of the strongest quarters in recent years.

 

This $3 billion fundraising is part of a broader trend among Indian public sector banks, many of which are tapping debt markets to support expansion. SBI’s proactive capital-raising approach signals its intent to maintain leadership in the sector and ensure ample liquidity for future growth.

 

Sources: Moneycontrol, CNBC-TV18, Reuters