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.

State Bank of India (SBI), India's largest lender, has announced key financial events and a successful bond issuance, demonstrating its robust financial position and market confidence.

Board Meeting and Q2FY26 Results

SBI has scheduled a Central Board meeting for November 4, 2025, to consider the bank's financial results for the quarter ended September 30, 2025. Following the results announcement, an Analyst Meet is set to take place at 5:00 PM at the State Bank Bhavan Auditorium.

In line with regulatory requirements, SBI has implemented a trading window closure for designated persons and their immediate relatives. This closure, which began on October 1, 2025, will remain in effect until 48 hours after the declaration of the financial results.

Tier 2 Bond Issuance

In a separate development, SBI successfully raised ₹7,500 crores through its Basel III compliant Tier 2 bond issuance. The key details of this bond issuance are as follows:

The bond issuance attracted diverse participation from qualified institutional bidders, including provident funds, pension funds, mutual funds, and banks. This overwhelming response underscores the strong investor confidence in SBI.

Management Commentary

SBI Chairman, C S Setty, commented on the bond issuance, stating that the wide participation and diverse bids demonstrated the trust investors place in the country's largest bank. He also highlighted SBI's recent financial achievements, including raising ₹25,000 crores via a Qualified Institutional Placement (QIP) earlier this year, which was oversubscribed by more than 4.5 times.

These developments showcase SBI's strong market position and its ability to raise capital effectively, positioning the bank well for future growth and regulatory compliance.