State Bank of India to tap infrastructure bonds after a 16-month hiatus: Bankers

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.

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.

($1 = 91.8550 Indian rupees)