SBI Plans ₹5,000 Cr Tier-II Bond Issue by August—Capital Boost Ahead of Busy Credit Season

State Bank of India (SBI) is preparing to raise around ₹50 billion (₹5,000 crore) via Basel III-compliant Tier-II bonds by August 2025, according to sources cited by Reuters. The move is part of the bank’s broader capital augmentation strategy to support credit expansion and maintain a healthy Capital to Risk-weighted Assets Ratio (CRAR) ahead of the festive lending season.

 

This would mark SBI’s first Tier-II issuance in FY26, following a series of successful fundraises in FY25, including ₹100 billion via infrastructure bonds and ₹31 billion through perpetual Tier-I bonds. The upcoming issue is expected to carry a 10-year maturity with a 5-year call option, and will likely attract bids from insurance companies and mutual funds, thanks to improved regulatory clarity on bond valuation.

 

The bank’s capital-raising spree also includes a ₹25,000 crore QIP, expected to launch by July, with Citi, HSBC, Kotak, and SBI Capital among the lead managers.

 

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Source: ET BFSI – SBI to Raise ₹50 Bn via Tier-II Bonds