State Bank of India raises Rs 4,691 crore via Tier 1 bonds

State Bank of India has raised Rs 4,691 crore through the issuance of Basel III-compliant Additional Tier 1 bonds. The bonds were priced with a 7.75 percent annual coupon.

State Bank of India raised Rs 4,691 crore through Basel III-compliant Additional Tier 1 bonds at a 7.75 percent annual coupon. The transaction was completed with bids exceeding twice the base size.

The strong response came from institutional investors across multiple domestic financial segments. This reflects solid demand for the bank's capital instruments.

The issuance supports SBI's efforts to maintain regulatory capital levels under Basel III rules.

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Illustration depicting Indian corporate executives preferring bank loans over bonds in a Mumbai office amid rising yields.
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Corporate borrowers favor bank loans over bonds amid rising yields

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Corporate borrowers in India are increasingly opting for bank loans instead of bond issuances. Rising capital market yields have eroded the cost advantage of bonds. Spreads between bank lending rates and bond yields have compressed significantly, especially for higher-rated entities.

State Bank of India's central board has approved raising up to Rs 60,000 crore this fiscal year through rupee and dollar bonds. The move is intended to strengthen the bank's capital position and support business growth.

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State Bank of India plans to maintain net interest margins above 3 percent in the coming fiscal year through deposit repricing and faster growth in retail and MSME loans.

The Ministry of Finance awarded $900 billion in a short-term bond auction at a cut-off rate of 12.99%.

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SBI Funds Management has set its initial public offering price band at ₹545 to ₹574 per share. The public issue, structured as an offer for sale, opens for subscription on July 14. The pricing comes at a notable discount to the company's unlisted market value.

IDFC First Bank posted its highest-ever quarterly profit for the period ended June 30, 2026. The lender's net profit rose sharply from the same quarter a year earlier.

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Domestic institutional investors raised their holdings in several large-cap Indian companies during the March 2026 quarter. Buying focused on financial, technology, telecom and industrial names even as share prices fell sharply.

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