SBI aims to raise up to $3 billion
State Bank of India, the country’s largest lender, announced on Tuesday that its board has approved raising up to $3 billion via debt in the current financial year.
The state-run lender will raise the funds in one or more tranches through a public offer or private placement of senior unsecured notes, denominated in U.S. dollars or another major foreign currency.
The Mumbai-based lender did not specify the use of the proceeds. Indian banks are bolstering their capital base to meet rising loan demand. Several state-run lenders, including Canara Bank, Punjab and Sind Bank, and Punjab National Bank, also plan to raise funds via debt this fiscal year.
In January, SBI raised Rs 5,000 crore (about $600 million) by selling Basel III-compliant additional tier-I perpetual bonds. The lender is also open to raising equity capital to support growth, Chairman Dinesh Kumar Khara said last month.
