Mumbai: India’s largest lender has tapped the debt market again, securing strong investor participation for its latest Tier 2 bond issuance aimed at strengthening capital buffers.
State Bank of India conducted bidding for its Tier 2 bond issuance on March 17, 2026, raising Rs 6,051 crore. The issue consisted of 6,051 non-convertible, taxable, redeemable, subordinated, unsecured bonds with a face value of Rs 1 crore each. This move supports the bank’s capital adequacy under Basel III norms while ensuring access to long-term funding.
The issuance drew a total of 47 bids, indicating healthy investor interest in the offering. The bonds carry a coupon of 7.05 percent, reflecting the pricing achieved through the electronic bidding platform of the National Stock Exchange. The strong response suggests continued appetite for high-quality bank debt instruments.
The bonds will have a deemed date of allotment and pay-in on March 20, 2026. The call option is scheduled for March 20, 2031, marking the fifth anniversary of allotment, with flexibility for subsequent anniversary dates. The final redemption is set for March 20, 2036, giving the instrument a long-term maturity profile.
The bonds are proposed to be listed on both BSE Limited and the National Stock Exchange of India Limited, enhancing liquidity and tradability for investors. The issuance structure aligns with regulatory requirements and standard market practices for subordinated debt instruments. SBI’s latest fundraising reflects its continued reliance on debt markets to optimize its capital structure while meeting regulatory norms and supporting future growth.
Disclaimer: This article is based solely on the contents of the company’s regulatory filing and does not include independent verification or additional reporting.
