SBI board approves raising up to $2 billion from overseas markets in FY27

Mumbai: The board of State Bank of India has approved a plan to raise long-term funds of up to $2 billion this fiscal year through overseas bond issuance, it said in a press release on Tuesday. The fundraising plan comes as the country’s largest lender seeks to diversify its funding base and reach out to global investors.

On May 7, SBI had said that its board will consider long-term fundraising plans.

The fund raising will be done in single or multiple tranches through public offerings under Reg-S/144A or private placements of fixed or floating rate bonds denominated in US dollars or other major foreign currencies, the bank said.

Reg-S and Rule 144A issuances are common routes for overseas bond sales and allow issuers to access a broader pool of international institutional investors, particularly in the United States and Asia. markets.

Indian banks are increasingly looking to overseas markets for financing due to rising credit demand, rising domestic market interest rates and the need to maintain diversified liability profiles.

Foreign currency Bond issuances also help lenders expand their investor base and strengthen their long-term funding positions.

The last time SBI raised funds through overseas bonds was in September 2025, when it borrowed $500 million at a record low coupon of 4.5% through a five-year dollar denominated bond issue.

In the quarter ending March, the state bank’s gross advances increased 17% year-on-year. ₹49.32 trillion and deposits increased by 11% ₹59.75 trillion.

Despite lackluster March quarter earnings and uncertainty over risks from the ongoing West Asian war, the bank maintained its loan growth forecast of 13-15% for FY27 on May 8.

Speaking to the media at the post-earnings conference last week, chairman CS Setty said credit growth for the country’s banking system is seen at 13-14% in the current financial year, while deposit growth is seen at 11-12%.

Setty said asset quality in the banking sector remains “very good” although the full impact of the war is yet to emerge due to potential second-order effects.

He said there could be “some impact” on the economy if the conflict lasts five to six months, leading to increases in fuel costs and supply chain disruptions.