MUMBAI: State Bank of India (SBI) has approved a proposal to mobilise up to ₹60,000 crore during the financial year 2026-27, reflecting the bank’s strategy to reinforce its funding resources and support future business expansion.
The decision was taken by the lender’s Central Board during its meeting held on June 18. The fundraising programme will be implemented after securing necessary regulatory and government clearances wherever applicable.
According to the bank, the proposed capital mobilisation will be carried out through a combination of debt instruments in Indian rupees as well as other convertible currencies. The plan provides SBI with the flexibility to raise resources from a wide range of investors across global and domestic markets.
The fundraising basket may include long-term bonds, Basel III-compliant Additional Tier 1 (AT1) bonds and Tier 2 bonds. These instruments are commonly used by banks to strengthen their capital structure while ensuring compliance with regulatory requirements.
SBI indicated that the issuance may take place through public offerings or private placements, depending on market opportunities and investor demand. The approach is designed to help the bank secure funds at competitive costs while maintaining efficient capital management.
The move comes at a time when financial institutions are closely monitoring interest rate trends, liquidity conditions and global investment flows. By obtaining advance approval for a sizeable fundraising programme, SBI gains the flexibility to enter the market at favourable windows during the fiscal year.
Industry observers believe the initiative will further enhance the lender’s ability to support credit growth across sectors, including infrastructure, manufacturing, retail lending and small businesses. A stronger capital base is also expected to improve resilience against economic uncertainties and evolving regulatory standards.
As the country’s largest public sector bank, SBI plays a pivotal role in financing economic activity. The planned fundraising exercise underscores its commitment to maintaining adequate capital buffers while supporting the growing demand for banking and financial services across India.