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Business Standard

SBI board panel nods to overseas fundraise of up to $3 billion in FY26

Country's largest lender State Bank of India's board of directors on Tuesday approved the bank's plans to raise nearly $3 billion through long-term instruments from the international market in 2025-2026 (FY26). The funds will be raised in single and multiple tranches through a public offer or private placement of senior unsecured notes in US dollar or any other major foreign currency, SBI said in a BSE filing. Its stock closed 1.2 per cent lower at ~785.35 per share. In FY25, its gross advances in international business grew by 14.84 per cent year-on-year (Y-o-Y) to ~6.19 trillion at the end of March 2025. The deposits of foreign offices rose by 12.3 per cent to ~2.15 trillion. Much of the bank's overseas business is funded by international market borrowings. According to SBI's analyst presentation, the External Commercial Borrowings (ECBs) by entities from India, Local Credit in overseas territories, and Trade Finance business were key drivers of customer credit. The growth in customer credit is majorly contributed by US Ops, GIFT City, Singapore, West Asia, and East Asia regional branches. Traditionally, all three components are equally balanced between 33 per cent and 34 per cent, said Managing Director (IB, Global Markets and Technology) Rama Mohan Rao Amara in an analyst call. But it saw a marginal uptick in India-linked loans in the second-half of last year on higher demand from the Indian corporate for raising ECBs because of the cost arbitrage. Even on a fully hedged basis they had a cost advantage compared to rupee lending, he added.