SBI raises ₹6,051 crore via Basel III Tier 2 bonds at 7.05% coupon

The country’s leading lender, State Bank of India (SBI), on Tuesday (March 17), said it has raised ₹6,051 crore through its second Basel III-compliant Tier 2 bond issuance for FY2025-26. The 10-year bonds carry a 7.05% annual coupon, with a call option available after five years and on each anniversary thereafter.

The issue attracted strong demand, with bids totalling nearly twice the base size of ₹5,000 crore. Forty-seven bids were received from a diverse set of qualified institutional investors, including provident funds, pension funds, mutual funds, and banks.

The bonds are non-convertible, taxable, redeemable, subordinated, unsecured, and fully paid-up, with a face value of ₹1 crore each. The deemed date of allotment and pay-in date is March 20, 2026, and the bonds are scheduled for redemption on March 20, 2036.

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The issue has been rated AAA with a stable outlook by CRISIL Ratings, India Ratings and Research. SBI confirmed that the bonds are proposed to be listed on BSE Limited and the National Stock Exchange of India Limited. CS Setty, Chairman, said that wider participation and heterogeneity of bids demonstrated the trust investors place in the country’s largest bank.

Third Quarter Results

The bank posted a standalone net profit of ₹21,028 crore in Q3FY26, up 24.49% YoY from ₹16,891 crore in Q3FY25. Operating profit rose 39.54% YoY to ₹32,862 crore. Net interest income (NII) increased 9.04% YoY to ₹45,190 crore, compared with ₹41,446 crore a year ago. Domestic net interest margin (NIM) stood at 3.12% in Q3FY26, while whole bank NIM came in at 2.99%.

SBI said its overall business crossed ₹103 lakh crore during the quarter. Total deposits surpassed ₹57 lakh crore, while advances crossed ₹46 lakh crore. Whole bank advances grew 15.14% YoY to ₹46.83 lakh crore. Domestic advances expanded 15.44%, with retail advances rising 16.51%. Within retail, personal loans grew 14.95%, while home loans increased 14.65%.

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SME advances rose 21.02% YoY, and agricultural loans grew 16.56%. Corporate advances increased 13.37%. Total deposits climbed 9.02% YoY to ₹57.01 trillion. CASA deposits grew 8.88%, taking the CASA ratio to 39.13% as of December 31, 2025.

Shares of State Bank of India ended at ₹1,063.20, down by ₹3.50, or 0.33%, on the BSE.