State Bank of India (SBI), the country’s largest lender by assets, has approved a plan to raise up to 200 billion rupees ($2.33 billion) through bonds in the fiscal year 2026. The funds will be raised via Basel III compliant Additional Tier 1 and Tier 2 bonds, targeting domestic investors, pending government approval. This move aims to bolster the bank’s capital base to support its expanding loan portfolio, which grew 12% to 42.2 trillion rupees by March 2025.
The decision aligns with SBI’s broader strategy, which includes a simultaneous 250 billion rupees share sale through qualified institutional placement (QIP), with participation expected from major investors like LIC. The bond issuance is part of SBI’s efforts to meet regulatory capital requirements while supporting sectors like renewables and infrastructure, where loan demand remains strong.
Published in SouthAsianDesk, July 16th, 2025
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