State Bank of India (SBI), India's largest public sector bank, has successfully raised ₹7,500 crore through the issuance of Basel III compliant Tier 2 bonds, while also reporting a significant increase in its quarterly net profit. These developments underscore the bank's strong financial position and its efforts to strengthen its capital base.

Bond Issuance Details

SBI has issued Non-convertible, Taxable, Redeemable, Subordinated, Unsecured, Fully Paid-up Basel III compliant Tier 2 Bonds. Here are the key details of the bond issuance:

The bonds, carrying the ISIN INE062A08488, are designed to enhance the bank's Tier 2 capital base, aligning with Basel III regulatory requirements.

Financial Performance Highlights

Alongside the bond issuance, SBI has reported robust financial results for the recent quarter:

Asset Quality and Business Growth

SBI's asset quality remained stable, with key metrics as follows:

• Gross Non-Performing Assets (NPA) ratio: 1.83%
• Net NPA ratio: 0.47%

However, fresh slippages increased to ₹7,945 crore from ₹4,222 crore in the previous quarter.

The bank also reported growth across various business segments:

• Wholesale bank advances: 11.6% year-on-year growth
• Domestic advances: 11% increase
• Wholesale deposits: 11.7% rise

Market Response

The market responded positively to these developments, with SBI's shares closing at ₹907.00, marking a 2.01% increase.

This combination of successful capital raising and improved financial performance demonstrates SBI's strong market position and its commitment to maintaining a robust capital structure in line with regulatory requirements.

State Bank of India (SBI), India's largest public sector bank, has successfully raised ₹7,500 crore through the issuance of Basel III compliant Tier 2 bonds. This strategic move aims to strengthen the bank's capital base and enhance its compliance with global banking standards.

Bond Details

The bonds issued by SBI have the following key characteristics:

Issuance Timeline

The bond issuance process was completed as follows:

• Issue Opening and Closing: October 17, 2025
• Allotment Date: October 20, 2025

Significance of the Issuance

This bond issuance is significant for several reasons:

1. Capital Adequacy: The Tier 2 bonds will contribute to SBI's capital adequacy ratio, helping the bank meet regulatory requirements under Basel III norms.

2. Long-term Funding: With a 10-year maturity and a call option after 5 years, these bonds provide SBI with long-term, stable funding.

3. Competitive Pricing: The coupon rate of 6.93% indicates SBI's strong credit profile and investor confidence in the bank.

4. Market Sentiment: The successful raise of ₹7,500.00 crore reflects positive market sentiment towards SBI and the Indian banking sector.

Regulatory Compliance

SBI has adhered to regulatory requirements by disclosing the bond issuance details to the stock exchanges, in compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The successful raising of ₹7,500.00 crore through Basel III compliant Tier 2 bonds demonstrates SBI's strong position in the market and its proactive approach to maintaining robust capital adequacy. This move is likely to support the bank's growth strategies and strengthen its ability to meet evolving regulatory standards in the banking sector.