State Bank of India Expands Capital Base with ₹6,051 Crore Bond

State Bank of India (SBI), the nation’s largest lender, announced on Tuesday, March 17, that it has successfully raised ₹6,051 crore via its second Basel III-compliant Tier 2 bond issue for FY2025–26. These 10-year bonds carry a 7.05% annual coupon and include a call option exercisable after five years and annually thereafter.

Strong Investor Demand and Bond Details

The bond issue attracted robust interest, with bids totalling nearly twice the ₹5,000 crore base size. Forty-seven bids were received from a diverse group of qualified institutional investors, including provident funds, pension funds, mutual funds, and banks. The bonds are non-convertible, taxable, redeemable, subordinated, unsecured, and fully paid-up, each with a face value of ₹1 crore. 

The allotment and pay-in date are set for March 20, 2026, with maturity scheduled for March 20, 2036. The issue holds a AAA rating with a stable outlook from CRISIL and India Ratings & Research and is planned to be listed on both BSE and NSE. 

SBI Q3FY26 Financial Performance

In its December quarter results, SBI reported a standalone net profit of ₹21,028 crore, marking a 24.49% year-on-year increase from ₹16,891 crore in Q3FY25. Operating profit rose sharply by 39.54% to ₹32,862 crore, while net interest income (NII) grew 9.04% to ₹45,190 crore. The domestic net interest margin stood at 3.12%, with the overall bank NIM at 2.99%.

The bank’s overall business crossed the ₹103 lakh crore mark during the quarter. Total deposits surpassed ₹57 lakh crore, and advances crossed ₹46 lakh crore, growing 15.14% year-on-year to ₹46.83 lakh crore. Domestic advances increased 15.44%, with retail loans rising 16.51%. Personal loans and home loans grew 14.95% and 14.65%, respectively.

Strong Performance Across Loan Segments

SME advances posted a robust 21.02% year-on-year growth, agricultural loans increased by 16.56%, and corporate advances rose 13.37%. Total deposits climbed 9.02% to ₹57.01 trillion. CASA deposits grew 8.88%, lifting the CASA ratio to 39.13% as of December 31, 2025, reinforcing SBI’s strong and stable funding profile.

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