SBI steps in with $1-billion funding for Sun Pharma’s Organon deal

State Bank of India (SBI) plans to join a group of global lenders to finance the $12 billion overseas acquisition of Sun Pharmaceutical Industries Ltd., according to people familiar with the matter.

SBI, the country’s largest bank by assets, will pledge as much as $1 billion, said the people, who asked not to be identified discussing a private matter. The proposal is awaiting board approval, sources said.

If approved, SBI will join Citigroup Inc, JPMorgan Chase & Co. as another major debt financier for Sun Pharma’s deal to acquire US-listed Organon & Co. in April, one of the largest foreign transactions by an Indian company. and Mitsubishi will join UFJ Financial Group Inc.

The move would be among the first major acquisition financing involving a state-run bank since the Reserve Bank of India in February allowed local lenders to finance corporate takeovers. Domestic banks have previously been barred from such deals due to regulatory and asset quality concerns, leading many companies to rely on shadow lenders, foreign institutions or public and private markets.

SBI and Sun Pharma did not respond to emails seeking comment.

Global lenders to Sun Pharma were considering multiple financing options for their bid to buy Organon, people familiar with the matter said last month.

The size of SBI’s financing underscores the growing appetite among state-owned banks to support acquisitions of Indian companies that are increasingly pursuing overseas targets to gain access to new markets, products and technology.

In March 2026, SBI entered into a partnership with MUFG to explore merger and acquisition deals in India. Chairman Challa Sreenivasulu Setty said in February that he was in talks with Japanese lenders to finance the massive acquisitions. The move comes as Japanese banks are pushing harder to strike deals in India’s nearly $4 trillion economy.