State Bank of India raises Rs 7,500 cr via 10-year Basel-III Tier 2 bonds at 6.93% coupon

state bank of india

Country’s largest state-owned lender, State Bank of India, on October 17 said it has raised Rs 7,500 crore through 10-year Basel-III compliant Tier 2 bonds at a coupon rate of 6.93 percent, as per press release.

The bonds are issued for a tenor of 10 years, with call option after 5 years and each anniversary dates thereafter and are rated AAA with stable outlook from ICRA Limited and CARE Ratings Limited, lender said in a release.

The bond issue received bids approximately 3 times against the base issue size of Rs 5,000 crores.

The total number of bids received was 101 indicating participation from diverse set of qualified institutional bidders. The investors were across provident funds, pension funds, mutual funds, banks etc, bank said in a release.

On October 15, Moneycontrol reported that SBI plans to raise up to Rs 7,500 crore through Basel-III compliant Tier-II bonds maturing in 10 years.

The home loan portfolio of the bank has crossed Rs 8.5 lakh crore. As of June 2025, the bank has a deposit base of over Rs 54.73 lakh crore with CASA ratio of 39.36 percent and advances of more than Rs 42.54 lakh crore.