SBI To Raise Up To $3 Billion In Long-Term Funds In FY26

State Bank of India (SBI), the country’s largest public sector lender, announced on Tuesday that its board has approved a plan to raise up to $3 billion in long-term funds during the 2025–26 financial year.

The Executive Committee of the Central Board granted the approval during a meeting held the same day.

According to an exchange filing, the committee agreed to proceed with the fundraising either in a single tranche or in multiple rounds under Regulation-S/144A.

The funds will be raised through public offers or private placements of senior unsecured notes denominated in US dollars or other major foreign currencies.

Strategy Aimed At Supporting Credit Growth

SBI stated that the move forms part of its broader strategy to secure funds at competitive interest rates, thereby supporting credit growth across both domestic and international operations.

Also Read: Eight Core Industries Record 0.5 Per Cent Growth In April

In a separate move, the bank had earlier announced plans to raise up to ₹25,000 crore during FY26 via qualified institutional placement (QIP) or a follow-on public offer (FPO), underlining its aggressive capital-raising agenda.

Mixed Financial Results In Q4FY25

Although SBI’s net profit declined year-on-year, its income and asset quality showed improvement.

The bank reported a standalone net profit of ₹18,642.59 crore in the fourth quarter of FY25, down 10 per cent from ₹20,698.35 crore in the same period the previous year.

Despite this decline, total income surged to ₹1,43,876 crore from ₹1,28,412 crore a year earlier.

Meanwhile, gross non-performing assets (NPAs) dropped to 1.82 per cent of total advances at the end of March 2025, down from 2.24 per cent a year ago.

Net NPAs also improved, falling to 0.47 per cent from 0.57 per cent.

Strong Operational Performance

The bank’s net interest income (NII) for the quarter stood at ₹42,774 crore.

For the full year, SBI’s operating profit exceeded ₹1 lakh crore for the first time, reaching ₹1,10,579 crore — a year-on-year growth of 17.89 per cent.

Operating profit for the fourth quarter also rose by 8.83 per cent to ₹31,286 crore.

Dividend Declared Amid Market Reaction

In a move welcomed by shareholders, SBI declared a dividend of ₹15.90 per share (1,590 per cent) for FY25.

The record date was set for 16 May, with payment scheduled for 30 May 2025.

However, the bank’s stock price reflected some caution from investors. Shares of SBI closed 1.2 per cent lower on Tuesday, settling at ₹785.35 apiece on the BSE.