State Bank of India (SBI) is planning to raise up to Rs 60,000 crore in FY27 via debt instruments, making it the state-owned lender’s largest annual fundraising programme in a year.

The bank’s board on Thursday gave its approval for the fundraising programme, which will be raised in rupee and foreign currencies.

The country’s largest bank will issue debt instruments like long-term bonds, Basel III-compliant Additional Tier 1 bonds and Basel III compliant Tier 2 bonds.

In a regulatory filing, SBI said the funds would be raised through public offer or private placement and may involved both Indian and overseas investors.

The funds, raised in multiple tranches, will be used to support the bank’s business growth and shore up its capital base.

The bank, which reported gross advances of Rs 49.32 trillion as on 31 March 2026, has guided for a 13-15% loan growth in FY27.

The capital-to-risk weighted assets ratio (CRAR) stood at 15.40% as of 31 March 2026. While common equity Tier 1 (CET-1) ratio was 12.29%, while the overall Tier 1 ratio was at 13.33%.

A couple of days back, HDFC Bank raised $750 million dollar bonds, the single largest international debt deal by an Indian lender since SBI’s similar bond sale in May 2023. It was priced at 90 basis points over US Treasuries, translating to a yield of 5.0670%.

HDFC Bank will use the proceeds of the bond issue to support the financial needs of its overseas branches and subsidiaries, fund growth in offshore businesses and for general corporate purposes.

Earlier this month, the Reserve Bank of India (RBI), as part of its drive to attract dollar inflows and bolster the rupee, said external commercial borrowings (ECBs) by banks and state-run companies would ‌qualify for a subsidised hedging facility.