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Key Points

SBI's board has approved raising Rs 20,000 crore through bonds to fortify its capital base. The bank's shares climbed 2% following the announcement, reflecting investor confidence. This follows a May approval for an additional Rs 25,000 crore equity raise via QIP or FPO. The moves aim to enhance SBI's financial stability amid its 70th-anniversary milestones.

Key Points: SBI Board Approves Rs 20,000 Crore Bond Raise for FY26 Capital Boost

  • SBI to issue Basel III-compliant bonds for domestic investors
  • Shares jump 2% to Rs 834 post-fundraise approval
  • May 2025 board approved Rs 25,000 crore equity raise via QIP/FPO
  • Government stake may dilute from 57.43% post-capital infusion
2 min read

Board gives SBI go-ahead to raise Rs 20,000 crore via bonds this fiscal

SBI greenlights Rs 20,000 crore bond issuance to strengthen capital base, shares surge 2% post-announcement.

"The capital will be raised in one or more tranches via Qualified Institutional Placement (QIP), Follow-On Public Offer (FPO), or other permissible methods. – SBI Regulatory Filing"

New Delhi, July 16

The board of directors of State Bank of India (SBI) on Wednesday approved a proposal to raise funds worth Rs 20,000 crore through the issuance of bonds to domestic investors in the current financial year (FY26).

In a regulatory filing, India's largest lender confirmed that its Central Board approved the raising of up to Rs 20,000 crore during the current financial year through "Basel III-compliant Additional Tier 1 and Tier 2 bonds". These bonds will be issued in Indian rupees to domestic investors, subject to government approvals where necessary.

The move is aimed at strengthening the capital base of the country’s largest bank.

After the announcement of the fundraiser, SBI shares shot up over 2 per cent to touch an intra-day high of Rs 834 on the National Stock Exchange (NSE).

Earlier in May this year, SBI’s board gave the go-ahead for raising equity capital of up to Rs 25,000 crore during FY26. The capital will be raised in one or more tranches via Qualified Institutional Placement (QIP), Follow-On Public Offer (FPO), or other permissible methods.

The objective is to boost SBI’s Common Equity Tier 1 (CET1) capital ratio— which will bolster the bank’s financial health.

The proposed QIP will lead to a dilution of the government’s stake, which stood at 57.43 per cent as of March 31, 2025. To manage the QIP process, SBI has appointed six prominent investment banks -- ICICI Securities Ltd, Kotak Investment Banking, Morgan Stanley, SBI Capital Markets Ltd, Citigroup, and HSBC Holdings Plc.

SBI gave a dividend cheque of Rs 8,076.84 crore to the government for the financial year 2024-25. The public sector bank’s net profit for the financial year 2024-25 shot up to Rs 70,901 crore.

The bank is celebrating its 70th year of operations with a balance sheet that has soared to ₹66 lakh crore and the number of its customers surging past a staggering 52 crore.

SBI also drives financial inclusion through more than 151 million Jan Dhan accounts and an extensive correspondent network. The bank’s agricultural lending exceeded Rs 3.5 lakh crore in FY25 -- the highest in the country -- supporting farm infrastructure, according to the statement.

In FY25, the Bank reinforced its social impact footprint by investing Rs 610.8 crore in CSR initiatives, reaching 94 'Aspirational Districts'. Its efforts spanned healthcare, education, rural development, and environmental sustainability.

- IANS

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Reader Comments

P
Priya S
While the capital raise is good, I hope SBI focuses equally on improving customer service. Last month I had to visit branch 3 times for a simple loan query. More capital should mean better services for common people like us.
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Rohit P
₹20,000 crore is huge money! As an SBI customer for 15 years, I'm proud to see our national bank growing so strong. Their work in aspirational districts and Jan Dhan accounts shows real commitment to financial inclusion. Jai Hind!
S
Sarah B
Interesting development. The appointment of global banks like Morgan Stanley and HSBC shows SBI is thinking big. Hope they maintain transparency in this process - public sector banks must lead by example in corporate governance.
K
Kavya N
My father worked at SBI for 30 years. Seeing it grow from ₹5 lakh crore to ₹66 lakh crore balance sheet brings tears 😊 But please don't forget the ground staff who make this possible - better incentives for them too!
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Michael C
As an investor, I'm impressed by SBI's ₹70,901 crore net profit. That's bigger than many Fortune 500 companies! The Basel III compliance gives me confidence to consider these bonds for my portfolio.

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