MUMBAI: India’s largest lender, State Bank of India, will issue infrastructure bonds in March after a gap of about 16 months, two bankers said on Tuesday.
SBI may sell 7-year or 10-year bonds to raise as much as 100 billion rupees ($1.09 billion), said the bankers, requesting anonymity as they are not authorised to speak to media.
When asked to confirm the bond issues, SBI told Reuters via email that “as a policy bank does not comment upon such matters”.
Infrastructure bonds are used to finance long-term development projects.
SBI had last sold infrastructure bonds in November 2024, when it raised 100 billion rupees through 15-year notes.
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Three Indian lenders have raised a total of 250 billion rupees through infrastructure bonds so far this financial year, sharply lower than 892 billion rupees raised in the previous fiscal.
India’s fiscal year runs April through March.
Bank of Baroda raised 100 billion rupees through seven-year green infrastructure bonds earlier in March, amid demand by a large state-run insurance firm and a provident fund house.
Other state-run lenders could also look to raise funds through the bonds this month, bankers said.
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