SBI Raises ₹6,051 Crore Through Basel III Tier 2 Bonds at 7.05% Coupon

State Bank of India (SBI) informed the exchanges that it has successfully raised ₹6,051 crore through its second Basel III compliant Tier 2 bond issuance in the current financial year. The fundraising initiative reflects strong investor confidence in the bank and supports its capital adequacy requirements under regulatory norms.

Details of the Bond Issuance

The bonds issued by SBI are non-convertible, taxable, redeemable, subordinated, unsecured, and fully paid-up Basel III compliant Tier 2 bonds in the nature of debentures. Each bond carries a face value of ₹1 crore.

The issue has a total size of ₹6,051 crore with 6,051 bonds allotted. The bonds carry a coupon rate of 7.05% payable annually and have a tenure of 10 years. They also include a call option after five years and on each anniversary thereafter, offering flexibility to the issuer.

The deemed date of allotment and pay-in date for the issue is March 20, 2026. If not exercised earlier, the bonds are scheduled to mature on March 20, 2036.

Strong Investor Participation

The bond issuance received a positive response from investors. Against a base issue size of ₹5,000 crore, bids worth nearly twice the amount were received, reflecting strong demand from institutional investors.

A total of 47 bids were submitted, indicating participation from a wide range of qualified institutional bidders. These included provident funds, pension funds, mutual funds, banks, and other institutional investors.

The bidding process was conducted on the Electronic Book Provider (EBP) platform of the National Stock Exchange.

Ratings and Listing Plans

The bonds have been assigned a AAA rating with a stable outlook by CRISIL Ratings Limited and India Ratings and Research Private Limited. The bank has also proposed to list the bonds on both BSE Limited and the National Stock Exchange of India Limited.

SBI Share Price Today

On March 18, 2026, SBI share price opened at ₹1,067.50, touching the day’s low at ₹1,061.30, as of 10:42 AM on the NSE.

Also Read: SBI Signs Strategic Partnership With MUFG Bank To Expand M&A Financing And Cross-Border Business!

Conclusion

SBI’s successful Tier 2 bond issuance highlights strong investor confidence in the bank’s financial strength and credit profile. The funds raised through this issuance will support the bank’s capital structure and regulatory capital requirements. 

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