SBI Approves ₹60,000 Crore Capital Raise For FY27 Through AT1, Tier 2 Bonds

The State Bank of India (SBI) on Thursday said its board has approved raising up to ₹60,000 crore in FY27 through the issuance of debt instruments.

According to a regulatory filing, the country's largest lender may raise funds in Indian rupees and/or other convertible currencies through long-term bonds, Basel III-compliant Additional Tier 1 (AT1) bonds and Basel III-compliant Tier 2 bonds.

The fundraising can be carried out through public issues or private placements and may involve both Indian and overseas investors.

Government bonds have rallied for six straight sessions, supported by lower crude oil prices and improving sentiment around India's inflation and fiscal outlook.

SBI shares closed at ₹1,042.50 on 18 June, up 1.56%. The stock touched an intraday high of ₹1,045.70 and a low of ₹1,024.45 during the session. On 19 June 2026, SBI shares were trading at ₹1,033.65 down 0.83%.

SBI Fundraising Plan At A Glance

What Debt Instruments Will SBI Use To Raise ₹60,000 Crore?

SBI has not specified a timetable for the fundraising and may tap investors in multiple tranches during FY27. The approval comes after the lender's 12 May decision to raise up to $2 billion through overseas bond issuances.

In September 2025, SBI raised $500 million through a five-year dollar-denominated bond at a coupon of 4.5%.

Why Is SBI Raising Funds Through Bonds?

SBI’s capital-to-risk weighted assets ratio (CRAR) stood at 15.40% as of March 31, 2026. Its Common Equity Tier 1 (CET-1) ratio was 12.29%, while the overall Tier 1 ratio came in at 13.33%.

The bank reported gross advances of ₹49.32 trillion for the quarter ended March, up 17% from a year earlier. Deposits rose 11% year-on-year to ₹59.75 trillion during the same period.

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What Is SBI's Outlook For FY27?

Despite reporting weaker-than-expected March-quarter earnings, SBI has retained its FY27 credit growth guidance. Factoring the bank's results in May, SBI expects credit growth of 13-15% during FY27.

The projected banking system credit growth is at 13-14%, while deposit growth is likely to be in the 11-12% range.

Asset quality across the banking sector remains healthy, though the management cautioned that the full impact of the ongoing West Asia conflict is yet to emerge.

According to the bank, a prolonged conflict lasting five to six months could affect economic activity through higher fuel costs and supply-chain disruptions.

Foreign investors have also been increasing allocations to Indian debt, adding support to the broader fixed-income market as lenders continue to access bond markets for funding.

Sources:

The Economic Times

Mint