State Bank of India raises ₹7,500 crores through tier 2 bonds

State Bank of India (SBI) has successfully raised ₹7,500 crores through a Basel III compliant tier 2 bond issuance. This marks the first such transaction by a public sector bank in the current financial year. The bonds, with a coupon rate of 6.93% payable annually, have a tenor of 10 years and include a call option after 5 years and on each subsequent anniversary date. ICRA Limited and CARE Ratings Limited rated the issue AAA with a stable outlook.

The issuance garnered an overwhelming response, with bids approximately three times the base issue size of ₹5,000 crores. A total of 101 bids were received from a diverse group of qualified institutional bidders, including provident funds, pension funds, mutual funds, and banks, demonstrating strong investor confidence. The bonds are non-convertible, taxable, redeemable, subordinated, unsecured, and fully paid-up, with a face value of ₹1 crore each.

The bidding process, conducted on the NSE's EBP platform on October 17, 2025, closed on the same day, with the deemed date of allotment and pay-in set for October 20, 2025. The bonds are proposed to be listed on both BSE Limited and the National Stock Exchange of India Limited. This follows earlier successful capital raises by SBI, including ₹25,000 crores in equity via QIP and a $500 million MTN issuance during the financial year.