New Delhi, July 16
The board of directors of State Bank of India (SBI) on Wednesday approved a proposal to raise funds worth Rs 20,000 crore through the issuance of bonds to domestic investors in the current financial year (FY26).
In a regulatory filing, India's largest lender confirmed that its Central Board approved the raising of up to Rs 20,000 crore during the current financial year through "Basel III-compliant Additional Tier 1 and Tier 2 bonds". These bonds will be issued in Indian rupees to domestic investors, subject to government approvals where necessary.
The move is aimed at strengthening the capital base of the country’s largest bank.
After the announcement of the fundraiser, SBI shares shot up over 2 per cent to touch an intra-day high of Rs 834 on the National Stock Exchange (NSE).
Earlier in May this year, SBI’s board gave the go-ahead for raising equity capital of up to Rs 25,000 crore during FY26. The capital will be raised in one or more tranches via Qualified Institutional Placement (QIP), Follow-On Public Offer (FPO), or other permissible methods.
The objective is to boost SBI’s Common Equity Tier 1 (CET1) capital ratio— which will bolster the bank’s financial health.