State Bank of India to raise up to $3 bln via debt in FY25

Bengaluru: State Bank of India , the country's largest lender, said on Tuesday that its board has approved raising up to $3 billion via debt in the current financial year.

The state-run lender will raise the funds in one or more tranches through a public offer or a private placement of senior unsecured notes, which will be denominated in US dollars or another major foreign currency, it said.

The Mumbai-based lender did not mention what the proceeds will be used for.

Indian banks are shoring up their capital base to meet the rising demand for loans.

Several state run-lenders, including Canara Bank, Punjab and Sind Bank and Punjab National Bank , plan to raise funds via debt this fiscal year.

In January, SBI raised 50 billion rupees (about $600 million) by selling Basel III-compliant additional tier-I perpetual bonds.

The lender is also open to raising equity capital to support growth, Chairman Dinesh Kumar Khara said last month.

SBI's shares were up 0.8% on Tuesday and have gained 30.5% so far this year. ($1 = 83.4950 Indian rupees).