SBI says no need for funds now

State Bank of India, the country's largest lender, does not have immediate plans to raise offshore bonds as there is no need for funds at the moment, said Hemant Contractor, managing director of SBI's international banking group.

Earlier, ratings agency Moody's downgraded SBI's unsecured debt rating on par with the sovereign foreign currency bond rating and changed its outlook on the bank's financial strength rating to 'negative' from 'stable.'

The federal government has enough room to reduce its stake in the bank but the market conditions need to improve for that to happen, SBI managing director S. Vishvanathan told reporters.

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