State Bank of India completed the issuance of ₹4,691 crore in Basel III compliant Additional Tier 1 (AT1) bonds on July 29, 2026, securing a coupon rate of 7.75%. The successful raise, which saw bids exceeding two times the base size, strengthens the bank's regulatory capital framework and supports its long-term lending capacity. This issuance marks a significant step in diversifying the country's largest lender's non-equity capital sources.

The bidding process was conducted on July 29, 2026, via the Electronic Bidding Platform (EBP) of BSE Limited. A total of 89 bids were received from a diverse pool of qualified institutional bidders, including provident funds, pension funds, mutual funds, and banks. The deemed date of allotment and pay-in is scheduled for July 30, 2026. The instruments are proposed to be listed on both BSE Limited and the National Stock Exchange of India Limited.

Issuance Details

The key parameters of the bond raising are detailed below:

Capital Strategy and Market Response

C S Setty, Chairman of State Bank of India, noted that the heterogeneity and volume of bids reflected strong trust in the bank. The bonds are rated AA+ with a stable outlook by CRISIL Ratings Limited and CARE Ratings Limited. They feature an issuer call option after five years, specifically on July 30, 2031, or any subsequent anniversary date.

This issuance allows State Bank of India to reinforce its regulatory capital adequacy under Basel III norms. By tapping the AT1 bond market, the bank enhances its financial stability and lending capacity without diluting equity. The disclosure was made in compliance with Regulation 30 of the SEBI (LODR) Regulations, 2015, as notified by Shima Devi, AGM (Company Secretary).

State Bank of India has disclosed its Environmental, Social, and Governance (ESG) ratings for FY26 as assigned by SEBI-registered providers, revealing an upgrade from Crisil ESG Ratings & Analytics Limited. The disclosure, made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, highlights divergent trends among rating agencies, with Crisil recognizing improved performance while other providers maintain or adjust their assessments based on publicly available information.

The ratings were awarded without direct engagement with the bank, relying solely on public data. This procedural detail is significant for investors interpreting the scores, as it indicates the assessments reflect external perceptions rather than internal management disclosures. The disclosure was submitted to both the Bombay Stock Exchange and the National Stock Exchange on July 28, 2026.

ESG Rating Performance by Provider

The table below details the ESG scores and qualitative ratings assigned by four SEBI-registered providers for FY25 and FY26.

Crisil ESG Ratings & Analytics Limited upgraded State Bank of India from a "Strong" rating with a score of 68 in FY25 to a "Leadership" rating with a score of 72 in FY26. Additionally, Crisil's Core ESG score remained stable at 74 across both periods. This represents the most significant positive movement among the disclosed ratings.

Conversely, SES ESG Research Private Limited recorded a marginal decline in its score from 71.2 to 70.4, though the qualitative rating remained unchanged at "Medium." ESG Risk Assessments & Insights Limited showed improvement, raising its score from 56.54 (Adequate) to 62 (Strong). NSE Sustainability Ratings & Analytics Limited did not provide a rating for FY26, having previously assigned a score of 73 (Leader) in FY25.

What the Numbers Show

The divergence in ratings underscores the varying methodologies employed by different ESG assessment frameworks. While Crisil’s upgrade to "Leadership" suggests material improvements in areas weighted heavily by its model, the static "Medium" rating from SES ESG Research indicates that other criteria may not have seen comparable progress. Investors should note that these ratings are independent assessments based on public data, not audited financial metrics, and may not fully capture internal strategic shifts unless those shifts are publicly documented.