State Bank to raise up to $3 bn through forex debt

MUMBAI: The country’s largest lender State Bank of India on Tuesday said it would raise up to $3 billion through forex debt in the current fiscal to fund its loan growth, which it expects to be around 16%.

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, SBI 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 fund raising in single/ multiple tranches of up to $3 billion via 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 as per the latest RBI data, rose over 17% 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.