SBI Unlikely to Require Fresh Equity for 6 Years, Plans ₹12,500 Crore Bond Raise: Setty

SBI Chairman C S Setty has indicated that the bank may not require fresh equity capital for 6 years, supported by earlier fundraising and strong profitability, while also preparing to raise ₹12,500 crore through bonds as part of its routine exercise. 

SBI Sees No Equity Requirement for 6 Years 

Setty stated that the ₹25,000 crore equity capital raised through QIP earlier in 2025 will support nearly ₹12 trillion credit expansion and help maintain a 15% capital adequacy ratio over 5 to 6 years. He added that the bank aims to keep CRAR at 15% and CET 1 at 12%, enabling credit support beyond ₹12 trillion. 

₹12,500 Crore Bond Raise Planned 

On the debt front, SBI will mobilise ₹12,500 crore via Tier II bonds. The bank periodically issues such bonds to replace maturing papers, and this year’s raise follows the routine capital strategy. Last year, SBI had also completed a ₹25,000 crore QIP, the largest in Indian markets. 

NIM Guidance Remains Steady 

Setty expressed confidence in retaining the 3% net interest margin guidance even if the RBI cuts the repo rate by 0.25%. With expectations building around a rate decision on December 5, he noted that the impact of a shallow 0.25% cut would be minimal for margins. 

Growth, Inflation and Policy Expectations 

SBI expects Q2 real GDP growth at 7.5% and 7% for FY26. Setty noted that high growth and softer inflation create a policy balancing act for the RBI. Recent comments from RBI officials have increased expectations of a potential rate cut. 

SBI sees several factors supporting NIMs, including the full effect of the 1% CRR cut, repricing of high-cost fixed deposits, and benefits from a 0.2% savings account rate reduction. These levers are expected to aid profitability despite earlier margin pressures. 

State Bank of India Share Price Performance 

As of November 27, 2025, at 2:27 PM, State Bank of India share price on NSE was trading at ₹971.25 down by 1.29% from the previous closing price. 

Read More: SBI Ventures Plans to Unveil ₹2,000 Crore Fund for Climate Startups in January-March! 

Conclusion 

SBI’s current capital position and profitability outlook suggest limited equity needs in the medium term. Its planned bond issuance and margin supporting measures align with its long-term growth and stability objectives. 

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