SBI board approves raising up to ₹20,000 crore via bonds; shares jump 2%

The lender will issue bonds to domestic investors during the ongoing financial year.

“…the Central Board of the Bank in its meeting held today, i.e., 16.07.2025, inter alia, accorded approval for raising funds in INR by issue of Basel III compliant Additional Tier 1 and Tier 2 Bonds, up to an amount of ₹ 20,000 Crores (Rupees Twenty Thousand Crores only) to domestic investors during FY26, subject to GOI approval wherever required,” State Bank of India (SBI) said in a regulatory filing.

Following the announcement, shares of SBI were trading at ₹832.50 apiece on the National Stock Exchange, rising 1.97%.

SBI’s board on May 3 had approved fundraising of ₹25,000 crore via qualified institutional placement (QIP). If the bank raises ₹25,000 crore, it will be the largest share sale through a QIP in India.

Reports suggest that SBI is expected to offer a slight discount to the current market price for the issue. According to an NDTV Profit report, the largest PSU lender of India may launch the QIP at a 2–3% discount to the current market price.

Previously it was reported that the state-run lender had picked Kotak Mahindra Capital Company, ICICI Securities, HSBC Securities and Capital Markets, Citigroup Global Markets, Morgan Stanley India, and SBI Capital Markets to manage the fundraising.

For the March quarter, the Mumbai-headquartered bank had reported a net profit of ₹18,642.59 crore in the January-March quarter (Q4 FY25), marking a decline of 10% from ₹20,698.35 crore logged in the corresponding quarter of the previous fiscal year on the back of higher provisioning for non-performing assets.

Its provisions for non-performing assets jumped 20% annually to ₹3,964.23 crore as against ₹3,293.94 crore registered in the year-ago period. Sequentially, provisions jumped 72%.

SBI's net interest income, or the difference between interest earned and interest expended, came in at ₹42,774.63 crore as against ₹41,655.19 crore in the year-ago period. The whole bank's net interest margin (NIM) for Q4 FY25 stood at 3%.