SBI Strengthens Capital Base with ₹7,500 Crore Tier 2 Bond Issue

State Bank of India (

) has raised ₹7,500 crore through the issuance of Basel III-compliant Tier 2 bonds at a 6.93% coupon rate, reinforcing its capital adequacy and funding profile. The issue, comprising 7,500 bonds of ₹1 crore each, closed on October 17, 2025, with allotment slated for October 20 and redemption due in October 2035, featuring a five-year call option. The bonds will be listed on both BSE and NSE. F inancially, SBI posted a net profit of ₹19,160 crore for Q1FY26, marking a 15% year-on-year rise, driven by robust other income of ₹17,345 crore compared to ₹11,162 crore last year. Net Interest Income held steady at ₹41,072 crore, while asset quality remained strong with Gross NPA at 1.83% and Net NPA at 0.47%. Fresh slippages stood at ₹7,945 crore, offset by higher recoveries of ₹3,253 crore. Advances grew 11% YoY, led by a healthy 11.6% rise in wholesale lending, and deposits were up 11.7%, indicating stable growth momentum and a well-balanced operational performance. Disclaimer: This post is for informational purposes only and not a recommendation to buy or sell any securities. I, or my family, associates, or relatives, may have a financial interest in the securities mentioned.