SBI board approves raising up to $2 billion from overseas markets in FY27

Mumbai: The State Bank of India's board has approved a plan to raise up to $2 billion in long-term funds this fiscal year through overseas bond issuances, the lender said in a press release on Tuesday. The fundraising plan comes come as the country’s largest lender looks to diversify its funding base and tap global investors.

On 7 May, SBI had said that the board will consider long-term fundraising plans.

The fundraising will be carried out in a 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 bank said.

Reg-S and Rule 144A issuances are commonly used routes for overseas bond sales, allowing issuers to access a wider pool of international institutional investors, particularly in the US and Asian markets.

Indian banks are increasingly looking at the overseas markets for funding amid growing credit demand, elevated domestic market rates, and the need to maintain diversified liability profiles.

Foreign currency bond issuances also help lenders broaden the investor base and strengthen their long-term funding position.

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%.

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.

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 said asset quality across the banking sector has been holding up “very well”, although the full impact of the war is yet to emerge because of the potential second-order effects.

He said 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.