SBI informed the exchanges that its Central Board approved the fund raise by issue of Base III compliant additional Tier 1 and Tier 2 bonds to domestic investors during the financial year 2026.
The same is subject to the Central government’s approval, wherever required, it added.
On another note, SBI is set to launch a ₹25,000 crore qualified institutional placement (QIP) on Wednesday, July 16, according to sources. This marks its first equity fundraising since 2017.
SBI is expected to offer a slight discount to the current market price for the issue.
Life Insurance Corporation of India (LIC) is likely to be a key participant, with a potential bid of over ₹5,000 crore.
Strong interest is also being seen from domestic mutual funds.
The capital raise is aimed at strengthening the bank’s capital base, rather than funding growth.
CNBC-TV18 reached out to both SBI and LIC for comments; their responses are awaited.
Out of the 50 analysts that have coverage on SBI, 40 of them have a ‘Buy’ rating on the stock, while nine of them have a ‘Hold’ rating and one has a ‘Sell’ rating.
SBI shares were up 2.04% at 833.1 apiece at 2.15 pm on Wednesday, July 16. The stock has gained 4% in the past month.
Also Read: ‘Stable, good quality’ Q1 results — Analysts see 19% upside on this life insurance stock
