SBI board approves ₹60,000 crore fundraising plan via bonds in FY27

MUMBAI: The board of directors of State Bank of India (SBI), the country’s largest lender, ₹Funds of Rs 60,000 crore have been injected in FY27 through various debt instruments, including Basel III-compliant bonds, to support business growth and strengthen capital base, the bank said in a stock exchange filing on Thursday.

The board has approved fundraising in Indian rupees or other convertible currencies through public issues or private placements. The bank also has additional I. and II. It can also access the market through tier-one bonds. SBI increased in FY26 ₹18,500 crore through domestic bond issues.

As on March 31, SBI’s capital-risk-weighted asset ratio stood at 15.40%, core capital (CET-1) ratio stood at 12.29% and overall tier-I ratio stood at 13.33%.

The approval follows the bank’s decision on May 12 to expand its funding base to $2 billion through overseas bond issuance in FY27 as part of efforts to diversify and expand access to global investors.

SBI last tapped overseas bond markets in September 2025, raising $500 million through a five-year dollar-denominated issue at a record low coupon of 4.5%.

For the quarter ending March, the state-owned lender reported a 17% year-on-year increase in gross advances. ₹Deposits increased by 11% to 49.32 trillion ₹59.75 trillion.

Despite a weaker-than-expected performance in March and concerns over risks from the ongoing West Asian conflict, SBI retained its Fiscal27 credit growth forecast of 13-15% on May 8.

Speaking to reporters after the earnings announcement in May, chairman CS Setty said banking system credit growth is expected at 13-14% in the current fiscal year, while deposit growth is likely to be 11-12%.

Setty said asset quality across the banking sector remains “very good” but the full impact of the conflict is yet to emerge given potential second-order effects.

He warned that a protracted conflict lasting five to six months could impact the economy through higher fuel costs and supply chain disruptions.