State Bank of India raises ₹7,500 crore through Tier 2 bonds

State Bank of India has raised ₹7,500 crore at a coupon rate of 7.33% through its second Basel III compliant Tier 2 bond issuance for the current financial year. The bonds are issued for a tenor of 15 years, with call option after 10 years and each anniversary dates thereafter and are rated ‘AAA’ with stable outlook from CRISIL Ratings and CARE Ratings. The issue attracted an overwhelming response from investors with bids in excess of 3 times against the base issue size of ₹ 4,000 crore. The total number of bids received was 77 indicating participation from diverse set of qualified institutional bidders. The investors were across provident funds, pension funds, mutual funds, banks etc.

The bank had successfully raised ₹7,500 crore in August at the coupon rate of 7.4% p.a through its first Basel III compliant Tier 2 bond issuance for the current financial year. The bonds were issued for a tenor of 15 years, with call option after 10 years and each anniversary date thereafter.

The State Bank of India continued its fundraising spree in the month of September after successfully raising ₹7,500 on August 28, 2024. The bank witnessed 15.3% YoY growth in credit offtake in Q1FY25, with overall advances crossing ₹38 trillion for the first time.

State Bank of India is the country’s largest lender and it offers a wide range of services in the Personal Banking, Agriculture/ Rural, NRI services, SME and Corporate Banking etc.

The SBI’s share prices closed 1% higher on Wednesday at ₹790 apiece on the NSE. The shares of SBI have given strong returns of 23% returns on a YTD basis in 2024.