The State Bank of India's central board on Thursday approved a plan to raise up to Rs 60,000 crore during the financial year 2026-27 through a mix of debt instruments. This move signals the lender's intent to tap both domestic and overseas markets amid evolving funding conditions.
Approval and Execution
The approval was granted at a board meeting held on June 18 and follows an earlier intimation to stock exchanges. The fundraising is subject to government approvals wherever required. The capital will be raised in rupees and/or any other convertible currency through the issuance of instruments including long-term bonds, Basel III-compliant Additional Tier 1 bonds, and Tier 2 bonds.
Flexibility in Fundraising
The country's largest lender stated that the capital will be raised via public offers or private placements. These instruments may be subscribed to by Indian as well as overseas investors, providing the bank with flexibility to time markets and optimise costs.
This strategic move allows SBI to strengthen its capital base and support growth in lending activities. The bank's decision comes as it prepares for potential regulatory changes and market opportunities.
