State Bank of India (SBI) on Thursday said its executive committee of the central board will meet on May 12 to consider raising up to $2 billion (around ₹17,000 crore) through foreign currency bonds in the current financial year. 

In a regulatory filing, the country’s largest lender said the committee will "examine the status and decide on long-term fundraising in single/multiple tranches of up to ₹2 billion under Reg-S/144A, through a public offer and/or private placement of fixed/floating rate bonds in US dollar or any other major foreign currency during FY2026-27". 

The proposed fundraising may be carried out in one or more tranches, depending on market conditions, and could involve a mix of public offers and private placements. This gives the bank flexibility to time issuances based on interest rate movements and investor demand in global markets. 

For SBI, the planned bond issuance is part of a broader strategy to strengthen its funding base and maintain growth momentum. More clarity on the size, timing, and structure of the fundraising is expected after the executive committee meeting next week. 

Shares of SBI extended losses on Friday, falling sharply during the session after a muted close in the previous trading day. The stock dropped as much as around 7% intraday following its quarterly results, reflecting a negative market reaction.The stock fell sharply intraday to around ₹1,017 

Axis Bank raised $500 million through 3-year loan 

Meanwhile, private sector lender Axis Bank has raised $500 million through a three-year loan from Japan’s Mitsubishi UFJ Financial Group (MUFG), according to a Bloomberg report. The loan is priced at the secured overnight financing rate (SOFR) plus an interest margin of 85 basis points, the report said, citing people familiar with the matter. Axis Bank plans to use the proceeds for lending activities and general corporate purposes. 

Overseas fundraising has steadily gained traction among Indian banks as they look to diversify their liability mix and access deeper pools of capital. With domestic credit demand remaining strong across sectors such as retail, infrastructure and MSMEs, lenders are increasingly tapping foreign markets to ensure adequate liquidity at competitive costs. 

In recent years, major lenders including HDFC Bank and ICICI Bank have also raised funds through dollar-denominated bonds and syndicated loans.