SBI Raises ₹4,691 Crore Through AT1 Bonds at 7.75% Coupon Rate

State Bank of India (SBI) has raised ₹4,691 crore through its first Basel III-compliant Additional Tier 1 (AT1) bond issue for the current financial year. The bonds were issued at a coupon rate of 7.75% and received strong interest from institutional investors.

The bond issue was oversubscribed, with bids exceeding twice the base issue size of ₹3,000 crore. Due to the strong response, SBI accepted bids worth the full ₹4,691 crore.

Strong Response From Institutional Investors

The issue attracted 89 bids from qualified institutional investors, including:

• Provident funds
• Pension funds
• Mutual funds
• Banks 

The high level of investor participation reflects confidence in SBI’s financial strength and the attractiveness of the bond offering.

Key Features of the Bond Issue

The AT1 bonds are perpetual, meaning they do not have a fixed maturity date. However, SBI has the option to redeem the bonds after 5 years and on every anniversary thereafter.

The bond issue received an AA+ rating with a Stable outlook from both CRISIL Ratings and CARE Ratings, indicating a high level of credit quality.

How the Funds Will Be Used?

The funds raised through the AT1 bond issue will strengthen SBI’s regulatory capital without issuing new equity shares. Under Basel III regulations, AT1 bonds form part of a bank’s capital base and help improve its capital adequacy while supporting future lending and business growth.

SBI’s Financial Position

As of March 31, 2026, SBI reported:

• Deposits: Around ₹60 lakh crore
• Advances: More than ₹49.33 lakh crore 

These figures highlight SBI’s position as India's largest public sector bank with a strong balance sheet.

SBI Share Price Movement

State Bank of India (SBI) share price was trading at ₹1,013.20 on the NSE on July 30, 2026, at 10:36 AM IST, down ₹0.50 (0.05%) for the day. The stock opened at ₹1,013.50 and moved between an intraday high of ₹1,016.90 and a low of ₹1,007.60. 

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Conclusion

SBI's successful ₹4,691 crore AT1 bond issue demonstrates strong investor confidence and strengthens the bank's regulatory capital position. The oversubscribed issue and participation from a wide range of institutional investors reflect positive market sentiment, while the additional capital is expected to support SBI's future growth and lending activities.

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