SBI raises ₹7,500 crore through Basel III tier 2 bonds at 6.93% coupon

The country’s biggest lender, State Bank of India (SBI), on Monday (October 20), said it has raised ₹7,500 crore through the issuance of Non-convertible, Taxable, Redeemable, Subordinated, Unsecured, Fully Paid-up Basel III compliant Tier 2 Bonds.

The bonds, in the nature of debentures, carry a face value of ₹1 crore each and a coupon rate of 6.93%. The issue opened and closed on October 17, 2025, with the date of allotment on October 20, 2025. A total of 7,500 bonds were issued, and the redemption is scheduled for October 20, 2035, with a call option available after five years and on each anniversary thereafter.

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Interest on the bonds will be paid annually on October 20 every year until redemption. The bonds are proposed to be listed on both BSE Ltd and the National Stock Exchange of India Ltd.

First Quarter Results

SBI reported a net profit of ₹19,160 crore, which is 15% higher than the same quarter last year, and also higher than the CNBC-TV18 poll estimate of ₹16,664 crore. However, the profitability of the lender was aided by a higher other income component. Other income for the quarter increased to ₹17,345 crore from ₹11,162 crore last year.

Net Interest Income (NII) or core income for the quarter remained flat at ₹41,072.4, which is nearly the same as the previous year’s figure of ₹41,126 crore, and marginally below the CNBC-TV18 poll figure of ₹41,650 crore.

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Asset quality for the quarter remained stable. Gross NPA at the end of the June quarter stood at 1.83% from 1.82% last quarter, while Net NPA remained unchanged from the March quarter at 0.47%. Fresh slippages for the quarter stood at ₹7,945 crore from ₹4,222 crore in he previous quarter.

Recovery and upgrades during the quarter stood at ₹3,253 crore, higher than the ₹1,739 crore last quarter. Wholesale ban advances were up 11.6% from last year, while domestic advances were up 11% on a year-on-year basis. Wholesale bank deposits increased by 11.7% from last year, while CASA deposits were up 8% from last year.

Shares of State Bank of India ended at ₹907.00, up by ₹17.85, or 2.01%, on the BSE.

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