State Bank of India will raise up to Rs 50,000 crore via debt instruments from Indian as well as overseas markets in the current fiscal. 

Even as there is a rising demand for credit, the central board of the country’s largest bank took this decision to raise capital.

SBI will raise the funds in rupee or any other convertible currency by issuing debt instruments, including long-term bonds, Basel III-compliant Additional Tier-1 (AT-1) bonds and Tier-2 bonds, the bank said today in an exchange filing.

The fund-raising plans come in the backdrop of loan growth outpacing deposit growth. SBI's loans grew nearly 16% year-on-year in the quarter ended March 2023, compared with a 9.19% growth in deposits. The lender expects loans to grow 12-14% in fiscal 2024.

In April, SBI raised $750 million through five-year dollar-denominated bonds at a semi-annual coupon of 4.8750% through its London branch.

In March, SBI locally raised Rs 3,717 crore through Basel III-compliant AT-1 perpetual bonds at a coupon of 8.25%.