SBI raises ₹10,000 crore through bond issuance; shares close 1.3% higher

State Bank of India (SBI) has raised ₹10,000 crore at a coupon rate of 7.23% through its seventh infrastructure bond issuance. The issue attracted an overwhelming response from investors with bids in excess of ₹11,500 crore and was oversubscribed in excess of 2 times against the base issue size of ₹5,000 crore.

The total number of bids received was 85, indicating wider participation and heterogeneity of bids. The investors were from provident funds, pension funds, insurance companies, mutual funds, etc.

The proceeds of bonds will be utilised to enhance long-term resources for funding infrastructure and the affordable housing segment. Based on the response, the Bank has decided to accept ₹10,000 crore at a coupon rate of 7.23%, payable annually for a tenor of 15 years. The instrument is rated AAA with a stable outlook.

In the recent quarterly results, the largest public sector bank in the country reported 28% growth in Q2FY25 at ₹18,334 crore. The net interest income for the quarter jumped 5.3% YoY to ₹41,620 crore.

State Bank of India is the country’s largest lender, offering a wide range of services in Personal Banking, Agriculture/ Rural, NRI services, SME, and Corporate Banking, among others. Shares of SBI closed 1.3% higher on Monday at ₹814 apiece on the NSE.