SBI Raises ₹7,500 Crore via Tier 2 Bonds at 6.93% Coupon

State Bank of India (SBI) has completed the issuance of ₹7,500 crore worth of Basel III-compliant Tier 2 bonds on October 17, 2025. The bidding was conducted on the Electronic Bidding Platform (EBP) of the National Stock Exchange, marking another successful capital-raising effort by the country’s largest lender.

SBI Tier 2 Bond Issuance Details

The issue consisted of 7,500 non-convertible, taxable, redeemable, subordinated, unsecured, fully paid-up debentures with a face value of ₹1 crore each. These bonds are in compliance with Basel III norms, intended to strengthen the bank’s capital adequacy and support future growth. The issue opened and closed on October 17, 2025, and attracted a total of 101 bids.

Coupon and Listing Information

The bonds carry a coupon rate of 6.93% and are proposed to be listed on both BSE and NSE. The deemed date of allotment and pay-in is set for October 20, 2025. This move is part of SBI’s ongoing strategy to optimise its capital structure through cost-effective debt instruments while meeting regulatory requirements.

Efficient Fundraising with Strong Demand

The successful bidding process and the number of bids received indicate strong investor interest in SBI’s Tier 2 bonds. This issuance will contribute to the bank’s overall Tier 2 capital and enhance its ability to absorb losses, thereby increasing financial stability and lending capacity in the long term.

Read More: State Bank of India Aims for Gender Diversity with 30% Women Staff Target!

State Bank of India Share Price Performance

On October 17, 2025, State Bank of India share price opened at ₹887.50 on NSE, above the previous close of ₹886.95. During the day, it surged to ₹894.75 and dipped to ₹883.00. The stock closed at ₹889.15 by the end of the day. The stock registered a marginal change of 0.25%.

Over the past week, it has moved up by 0.70%, over the past month, it has moved up by 4.07%, and over the past 3 months, it has moved up by 7.26%.

Conclusion

SBI’s ₹7,500 crore Tier 2 bond issue at a 6.93% coupon reaffirms its strong market standing and investor confidence. The timely capital mobilisation will help the bank reinforce its capital base and support its future expansion plans in a stable and cost-efficient manner.

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