SBI Plans to Raise ₹10,000 Crore Via Infrastructure Bond Issue in June

State Bank of India (SBI) is preparing to raise up to ₹10,000 crore through infrastructure bonds in June, according to a report by NDTV Profit. The public sector bank is likely to issue bonds with a 15-year maturity. The process has already begun, and the launch is expected to take place after the Reserve Bank of India’s Monetary Policy Committee (MPC) meeting, scheduled from June 4 to 6.

As of 10:56 AM on May 7, 2025, State Bank of India share price was trading at ₹777.25, up 0.41% for the day, but down 9.58% over the past six months and 3.07% over the past year.

Bond Details

The proposed issuance may have a base size of ₹5,000 crore, with an additional ₹5,000 crore as a greenshoe option. The bonds are expected to carry interest rates in the range of 6.85% to 6.90%. However, final details regarding the issuance have not been confirmed. 

Previous Bond Issuances

In the financial year ending March 2024, SBI had raised ₹30,000 crore through three separate 15-year infrastructure bond issues. In addition, the bank raised ₹10,000 crore each through Tier-I and Tier-II bonds. These instruments are typically used by banks to fund long-term infrastructure and housing projects.

Loan and Deposit Performance

As of the quarter ended March 2024, SBI’s infrastructure loan book stood at ₹3.97 lakh crore, showing a 0.7% year-on-year increase. Gross advances for the bank rose 12.03% year-on-year to ₹42.20 lakh crore. In contrast, deposit growth was lower, at 9.48%, with total deposits reaching ₹53.82 lakh crore.

Read More: SBI or HDFC Bank: Where’s the Bigger Payout for Investors?

About Infrastructure Bonds

Infrastructure bonds are long-term debt instruments, usually with a minimum maturity of seven years. They are used by banks to finance infrastructure projects and are eligible for certain regulatory exemptions, including from statutory liquidity ratio (SLR) and cash reserve ratio (CRR) requirements. Loans for affordable housing also qualify under these bonds.

Conclusion

SBI’s planned infrastructure bond issue in June would mark another round of long-term fundraising, following multiple issuances last year. The exact timing and terms are expected to be finalised after the RBI’s upcoming policy review.

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