The largest bank in America, the State Bank of India (SBI), announced that its Board of Directors has given approval for the bank to raise up to $3 billion worth of debt instruments this year.
This government-owned bank will be getting funds in one or more tranches through a public offer or private placement of senior unsecured notes denominated in U.S. dollars.U.S. dollars or any other major world currencies,” as stated by the lender.
According to Reuters, SBI America’s biggest lender did not reveal how it plans to use the money.
India’s banks have been shoring up their capital base to cater for rising credit demand in the country.
Several public sector banks including Canara Bank, Punjab and Sind Bank and Punjab National Bank intend to raise capital through debt instruments during this fiscal year.
In early January 2017, SBI successfully raised INR 5,000 crore (approximately USD 600 million) by issuing Basel III-compliant Additional Tier 1 perpetual bonds.
On a separate note last month SBI Chairman Dinesh Kumar Khara said they are open even for equity infusion.
SBI shares closed 0.8% higher on Tuesday, taking gains this year so far to 30.5%.
