State Bank of India's Central Board approved a comprehensive fundraising plan on June 18, 2026 to raise up to ₹60,000 crore through debt instruments in FY27. According to the bank's regulatory filing, the board meeting began at 10:00 am and concluded at 1:15 pm. As reported by The Economic Times, this represents the largest annual fundraising programme announced by any lender so far and comes at a time when banks are increasingly tapping overseas markets. The funds may be mobilised in Indian rupees or any other convertible currency through the issuance of various debt instruments, including long-term bonds, Basel III-compliant Additional Tier 1 bonds, and Basel III-compliant Tier 2 bonds. The inclusion of dollar bonds suggests SBI may look to take advantage of the Reserve Bank of India's concessional swap window, which is aimed at boosting foreign inflows and supporting the rupee.
At its 71st Annual General Meeting in Mumbai, SBI Chairman CS Setty outlined a forward-looking strategy anchored in digital transformation, sustainability and customer-centric innovation. The bank declared a dividend of ₹17.35 per share for FY26, up from ₹15.90 in FY25, translating into an estimated ₹8,813.4 crore payout to the government, which holds a 55.52% stake as of March 2026. The higher payout underscores the bank's strong profitability, with SBI reporting a near record net profit of ₹80,032 crore for FY26. Looking ahead, Setty emphasized plans to deepen investments in artificial intelligence, analytics and cybersecurity, while expanding the green loan portfolio across renewable energy, electric mobility and climate technologies.
India's largest lender, with a loan book of ₹49.33 lakh crore, reported 17% loan growth in FY26 while maintaining a capital adequacy ratio of 15.4% as of end-March, with tier-2 capital at 2.07%. The fundraising is aimed at strengthening SBI's capital base and supporting business expansion, particularly as credit growth remains robust. In the previous fiscal, SBI raised ₹13,551 crore through two tranches of Tier 2 bonds and mobilised ₹25,000 crore through a qualified institutional placement (QIP), marking the largest such issuance in the Indian capital market. These issuances saw strong investor demand and reflect the bank's continued ability to efficiently access capital markets to support balance sheet growth and meet regulatory capital requirements.
SBI shares responded positively to the fundraising announcement, with shares closing at ₹1,042.85 on Thursday, up 1.6% from the previous close. As of 3 pm, SBI share price was trading 1.5% higher at ₹1,041.70 on the BSE, having hit the day's peak of ₹1,045.95, up almost 2% from the previous close. The stock has delivered strong long-term performance, jumping 32% in a year and 152% in the last five years, delivering solid gains to investors. Global brokerage Jefferies reiterated its positive outlook on SBI following the fundraising announcement, maintaining a 'Buy' rating with a price target of ₹1,300 per share, implying a potential upside of around 30% from current levels. The approval follows the bank's May 12 decision to raise up to $2 billion through overseas bond issuances in FY27 as part of efforts to diversify its funding base and broaden access to global investors.
The fundraising comes at a strategic time as banks increasingly tap overseas markets, with the Reserve Bank of India's concessional swap window aimed at boosting foreign inflows and supporting the rupee. More banks and public sector units such as Power Finance Corp (PFC), Rural Electrification Corp (REC) and National Bank for Financing Infrastructure and Development (NaBFID) are likely to frontload their external borrowings to take benefit of the central bank facility, with inflows likely to be close to $75 billion, according to Japan's MUFG. 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%. The fundraising will be subject to required government approvals and aims to support the bank's robust business expansion plans.
