State Bank of India Schedules Board Meeting for Q2FY26 Results, Announces Successful Tier 2 Bond Issuance

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:

Particulars	Details
Bond Type	Basel III compliant Tier 2 Bonds
Issue Size	₹7,500 crores
Coupon Rate	6.93%
Tenor	10 years with call option after 5 years
Total Bids Received	101
Investor Response	Approximately 3 times the base issue size
Credit Rating	AAA (Stable) by ICRA and CARE Ratings

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.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.63%	+0.66%	+5.24%	+22.91%	+16.71%	+294.68%

State Bank of India (SBI), India's largest bank, is set to enter the bond market with a significant offering. The bank plans to raise Rs 7,500 crore by issuing 10-year Tier II bonds on Friday, marking its first such bond issue.

Bond Issue Details

Parameter	Details
Issue Type	10-year Tier II bonds
Base Size	Rs 5,000 crore
Green Shoe Option	Rs 2,500 crore
Total Potential Size	Rs 7,500 crore
Expected Coupon Rate	Above 7%

Key Points

This bond issue represents SBI's first venture into Tier II bonds.
The bank has structured the issue with a base size of Rs 5,000 crore and a green shoe option of Rs 2,500 crore.
The decision to retain the green shoe option will be based on market response.
The bonds are expected to be priced at a coupon rate exceeding 7%.

This move by SBI comes at a time when banks are looking to strengthen their capital base. Tier II bonds are typically used to improve a bank's capital adequacy ratio and support its lending activities.

The pricing of these bonds above 7% suggests that investors may find them attractive, especially in the current interest rate environment. However, the final pricing and market response will be crucial in determining the success of this bond issue.

SBI's decision to tap the bond market for such a substantial amount indicates its strategy to diversify its funding sources and potentially take advantage of favorable market conditions. The outcome of this bond issue may set a precedent for future capital-raising activities by other banks in the Indian financial sector.