Mumbai, May 12 -- The State Bank of India's board has approved a plan to raise up to $2 billion in long-term funds this fiscal year through overseas bond issuances, the lender said in a press release on Tuesday. The fundraising plan comes come as the country's largest lender looks to diversify its funding base and tap global investors.

On May 7, SBI had said that the board will consider long-term fundraising plans.

The fundraising will be carried out in a single or multiple tranches under Reg-S/144A through public offers or private placements of fixed or floating rate bonds denominated in US dollars or other major foreign currencies, the bank said.

Reg-S and Rule 144A issuances are commonly used routes for overseas bond sales, allowing...