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According to a Bloomberg story citing sources, State Bank of India (SBI), the nation’s biggest public sector lender, requested a loan of USD 1.25 billion, which might be the biggest dollar-denominated bank loan from the nation’s financial sector in 2024.

According to the article, the loan is being sought for general business purposes via its Gujarat International Finance Tec-City office.

SBI has not yet responded to the inquiry.

The persons, who requested not to be named in order to discuss private affairs, said that the five-year loan, which has an interest margin of 92.5 basis points over the risk-free Secured Overnight Financing Rate, is being arranged by CTBC Bank, HSBC Holdings Plc, and Taipei Fubon Bank.

Due to tighter domestic rules, non-banking financing firms (NBFCs) are leading the charge in foreign currency loan raising this year, and SBI is joining an increasing number of local borrowers in this regard.

Union Bank of India’s Sydney office is advertising a three-year loan for A$125 million ($81 million), while Cholamandalam Investment & Finance Co. is the most recent Indian NBFC to get a $300 million syndicated term loan. In addition, a $750 million loan is being raised by Bank of Baroda.

The State Bank of India just announced its quarterly results, showing a 27.92% year-over-year rise in net profit for the July–September 2024 quarter.

In Q2FY25, the bank’s net profit increased to Rs 18,331 crore from Rs 14,330 crore in the same period the previous year.