State Bank of India (SBI) has raised ₹4,691 crore through its first Basel III-compliant Additional Tier 1 (AT1) bond issuance of the current financial year, following strong demand from institutional investors.
The country’s largest lender accepted bids above the base issue size after the offering attracted subscriptions of more than twice the amount initially planned.
The AT1 bonds were issued at a coupon rate of 7.75% and carry a perpetual tenor, with the bank retaining the option to call the bonds after five years and on every anniversary thereafter. The issue has been assigned an AA+ rating with a stable outlook by both CRISIL Ratings and CARE Ratings.
Strong institutional demand
SBI’s bond issue received a robust response from investors, with bids exceeding two times the base issue size of ₹3,000 crore. The bank received 89 bids, reflecting participation from a wide range of qualified institutional investors, including provident funds, pension funds, mutual funds and banks.
Commenting on the fundraise, SBI Chairman C S Setty said the breadth of investor participation reflected confidence in the lender.
“Wider participation and heterogeneity of bids demonstrated the trust investors place in the country’s largest Bank.”
Based on the strong investor demand, SBI decided to accept ₹4,691 crore at a coupon rate of 7.75%, payable annually. The bank said the issuance is significant as it helps diversify its funding sources while strengthening its long-term non-equity regulatory capital base.
Additional Tier 1 (AT1) bonds are issued by banks to strengthen their capital under the Basel III framework. These perpetual instruments carry loss-absorption features, allowing banks, with the approval of the Reserve Bank of India (RBI), to either write down the bonds or convert them into equity during periods of financial stress.
AT1 bonds qualify as a part of a bank’s core capital and are among the key instruments used by public sector banks to meet the Basel III capital adequacy requirements.
Stock performance
The PSU stock ended 0.10% higher at ₹1,013.80 per share on BSE today. It has hit its 52-week high of ₹1,234.80 per share on BSE in February 2026. Meanwhile, it touched its 52-week low of ₹786.55 in August 2025.
It fell 2% in 1 month, 7% in 3 months, 5% in 6 months, but rose 27% in 1 year and 129% in 5 years.
State Bank of India (SBI) is scheduled to review and announce its upcoming Q1 FY27 financial results on August 7, 2026. F
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