Mumbai, Jun 12 (IANS): State Bank of India (SBI) plans to raise up to $3 billion through long-term debt in the current financial year (2024-25), according to a stock exchange filing by the country’s largest bank.

The proposal has been approved by the board of directors and SBI intends to secure the funds in single or multiple tranches either through a public offering or private placement of senior unsecured notes. These notes will be denominated in US dollars or other major foreign currencies, according to the bank's statement.

“Pursuant to Regulation 30 of SEBI Regulations, 2015, we submit that the Executive Committee of the Central Board at its meeting held today, i.e., 11th June 2024, has approved, inter alia, to examine the status and decide on long-term fundraising in single/multiple tranches of up to US$ 3 Billion…through a public offer and/or private placement of senior unsecured notes in US Dollar or any other major foreign currency during FY 2024-25,” SBI said in an exchange filing.

This move comes as Indian banks, including SBI, are strengthening their capital reserves to cater to increasing loan demands. Several other state-run banks including Canara Bank and Punjab National Bank also have plans to raise funds through the debt route during the current financial year.