State Bank of India's board has approved a long-term fund raising of up to $2 billion (₹200 crore) during FY27. According to the bank's exchange filing dated May 12, the fund raising will be conducted through public offer and/or private placement of fixed/floating rate bonds in US Dollar or any other major foreign currency. The announcement comes as the country's biggest lender continues its capital strengthening initiatives, with the fundraising plan being carried out in single or multiple tranches under Reg-S/144A through public offers or private placements of fixed or floating rate bonds denominated in US dollars or other major foreign currencies.
The fund raise announcement follows SBI's robust fourth quarter results for FY26. As reported by ET Now, the bank reported a 6% increase in standalone net profit at ₹19,684 crore for the quarter ended March 2026, compared to ₹18,643 crore in the same period of the previous fiscal year. The improved profitability was aided by a decline in bad loans, demonstrating the bank's strengthening asset quality. For the quarter ended March, the state-owned bank's gross advances grew 17% year-on-year to ₹49.32 trillion and deposits rose 11% to ₹59.75 trillion.
On Tuesday, SBI shares closed at ₹974.70, up 0.12% from the previous closing on BSE. According to ET Now, this modest gain occurred despite the significant fund raise announcement and strong quarterly results. The stock movement reflects the market's measured response to the bank's capital strengthening initiatives. The fundraising strategy aligns with Indian banks' growing trend of tapping overseas markets for funding amid growing credit demand, elevated domestic market rates, and the need to maintain diversified liability profiles. The last time SBI raised funds through overseas bonds was in September 2025, when it borrowed $500 million through a five-year dollar-denominated bond issue at a record low coupon of 4.5%.
Despite the underwhelming March quarter earnings and uncertainty around risks from the ongoing West Asia war, the bank on 8 May maintained its credit growth guidance of 13-15% for FY27. Speaking to the media in a post-earnings conference last week, chairman C.S. Setty said credit growth for the country's banking system is seen at 13-14% in the current fiscal year, whereas deposit growth is seen at 11-12%. Setty noted that asset quality across the banking sector has been holding up "very well," although the full impact of the war is yet to emerge due to potential second-order effects. He cautioned that there could be "some impact" on the economy if the conflict continues for five to six months and leads to increase in the cost of fuel and causes supply-chain disruptions.
