State Bank of India (SBI) plans to join a group of global lenders in funding Sun Pharmaceutical Industries Ltd.’s $12 billion overseas acquisition, according to people familiar with the matter.
SBI, the country’s largest bank by assets, is set to commit as much as $1 billion, the people said, asking not to be identified discussing a private matter. The proposal is pending board approval, the people said.
If approved, SBI will join Citigroup Inc, JPMorgan Chase & Co. and Mitsubishi UFJ Financial Group Inc. as another key debt financier of Sun Pharma’s agreed deal in April to buy US-listed Organon & Co., one of the biggest outbound transactions by an Indian company.
The move would be among the first sizeable acquisition-financings involving a government-run bank since the Reserve Bank of India in February allowed local lenders to finance corporate takeovers. Domestic banks had previously been barred from such deals due to regulatory and asset-quality concerns, prompting many companies to rely on shadow lenders, foreign institutions, or public and private markets.
SBI and Sun Pharma did not respond to emails seeking comment.
Global lenders to Sun Pharma were weighing multiple financing options for its proposed acquisition of Organon, people familiar with the matter said last month.
The size of SBI’s funding underscores the growing appetite among state-run banks to back acquisitions by Indian companies, which have increasingly pursued overseas targets to gain access to new markets, products and technology.
In March 2026, SBI formed a partnership with MUFG to explore M&A deals in India. Chairman Challa Sreenivasulu Setty said in February that it was talking to Japanese lenders to fund jumbo acquisitions. The move comes as Japanese banks go to greater lengths in tapping deals in India’s nearly $4 trillion economy.
