SBI to Raise Up to $3 Billion in FY26 via Public Offer or Debt Issue

In a key move to strengthen its long-term capital base, State Bank of India (SBI) — the country’s largest lender — has announced plans to raise up to $3 billion in foreign currency during FY26. The capital will be raised either through a public offer or via private placement of senior unsecured notes in US dollars or any other major foreign currency.

“The funds may be mobilised in single or multiple tranches depending on market conditions,” SBI mentioned in its exchange filing dated May 20.

This capital raise will help SBI maintain its financial flexibility and global competitiveness amid evolving market scenarios.

Board Approval for Rs 25,000 Crore Capital Raise

In addition to the foreign currency fundraising, SBI’s board had earlier approved a separate proposal to raise up to ₹25,000 crore during FY26. This would be done in one or more tranches through various methods such as Qualified Institutional Placement (QIP), Follow-on Public Offer (FPO), or any other approved route.

The twin fundraising strategies reflect SBI’s proactive approach to securing long-term capital and ensuring business expansion without disruption.

Growth Not Dependent on Fundraise, Says Chairman

During the bank’s recent fourth-quarter earnings call, SBI Chairman CS Setty addressed concerns about capital adequacy and market uncertainties. He acknowledged that global tariff uncertainty could impact economic and investment trends, but clarified that:

“Without raising capital, the bank’s growth will not be impacted. Benign asset quality is likely to continue for a longer period.”

This statement highlights SBI’s confidence in its current financial health, even as it prepares for future opportunities with additional capital.

Competitive Moves Across Banking Sector

SBI’s fundraising decision comes at a time when other private lenders like Axis Bank and IDFC First Bank are also in the process of raising capital. This reflects a broader trend in the Indian banking industry to strengthen balance sheets and prepare for expansion amid global economic volatility.

As SBI gears up to mobilize funds via global and domestic markets, its strategy is being closely watched by industry observers and investors alike. With a strong asset base and continued focus on prudent capital management, SBI is positioning itself for sustainable growth in FY26 and beyond.