SBI to raise upto $3 billion via Forex debt

The state-run lender said the money will be denominated in US dollars or another major foreign currency.
SBI to raise upto $3 billion via Forex debt
(File Photo | EPS)

The nation’s largest lender State Bank of India Tuesday said it would raise up to $3 billion via Forex (foreign exchange) debt in the current fiscal to fund its loan growth which it expects to be around 16 per cent. 

The lender which controls a fifth of the system-wide assets and liabilities will raise the funds in one or more tranches through a public offer or a private placement of senior unsecured notes, the State Bank said after a board meeting that has approved the debt raising plan of up to $3 billion in the current financial year.

The state-run lender said the money will be denominated in US dollars or another major foreign currency.

“The executive committee of the central board at its meeting held today has approved a long-term fundraising in single/multiple tranches of up to $3 billion through a public offer and/or private placement of senior unsecured notes in US dollars or any other major foreign currency during FY25," SBI informed the stock exchanges.

Banks are shoring up their capital to meet the rising credit demand which according to the latest RBI data rose more than 17 per cent in May.

Several public sector lenders, including Canara Bank, Punjab and Sind Bank and Punjab National Ban, plan to raise funds via debt this fiscal. 

In January, SBI had raised Rs 5,000 crore by selling Basel III-compliant additional tier-I perpetual bonds.

SBI is also open to raising equity capital to support growth, chairman Dinesh Kumar Khara said last month.

SBI's shares have gained over 30 percent so far this year and has a market capitalisation of around Rs 8 trillion making it the most valued public sector entity and the second most valued bank after HDFC Bank. 

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