State Bank of India’s board approved a fundraise of up to ₹60,000 crore through bond issuance in the ongoing financial year, the bank disclosed on June 18. The bonds may include long-term debt, Basel III-compliant Additional Tier-1 bonds, and Additional Tier-2 bonds, issued via public or private placements, according to an exchange filing reported by livemint.com.
The Central Board of the bank sanctioned the fundraise to strengthen capital adequacy and support growth plans. The issuance will be structured under regulatory frameworks, including Basel III norms, ensuring compliance with risk and capital requirements. SBI’s stock price reacted positively to the announcement, trading nearly 2% higher on the day of the approval, reflecting investor confidence in the bank’s capital strategy.
This fundraise is part of SBI’s broader capital management approach amid a competitive banking environment and evolving regulatory landscape. Comparable large-scale bond issuances by public sector banks have been instrumental in bolstering balance sheets and enabling credit expansion. The ₹60,000 crore target positions SBI among the top-tier Indian banks actively leveraging bond markets to maintain robust capital buffers.
SBI’s share price has surged 32% over the past year and 152% in five years, underscoring strong investor returns. The bank’s next quarterly results, expected later this year, will provide further insight into how the capital raised through bonds impacts its lending capacity and financial performance.