State Bank of India (SBI) has raised ₹4,691 crore through its first Basel III-compliant Additional Tier 1 (AT1) bond issue of the current financial year. The fundraising received a strong response from institutional investors, with subscriptions crossing more than twice the initial issue size. Due to the high demand, SBI accepted bids above the planned base issue size.
Bond Details
The AT1 bonds have been issued at an annual coupon rate of 7.75%. These are perpetual bonds, which means they do not have a fixed maturity date. However, SBI has the option to redeem (call) the bonds after five years and on every anniversary after that. The bond issue has received an AA+ rating with a stable outlook from both CRISIL Ratings and CARE Ratings.
Strong Response From Investors
SBI had initially planned to raise ₹3,000 crore, but the issue attracted more than twice that amount. The bank received 89 bids from qualified institutional investors, including provident funds, pension funds, mutual funds, and banks. Because of this strong demand, SBI decided to raise ₹4,691 crore.
SBI Chairman C. S. Setty said that the wide participation from different types of investors shows their strong trust in the country’s largest bank. He said the large number of bids reflects investor confidence in SBI.
Why This Fundraising Is Important
According to SBI, this bond issue will help the bank diversify its funding sources and strengthen its long-term regulatory capital. A stronger capital base will help the bank support future business growth and meet regulatory requirements.
What Are AT1 Bonds?
Additional Tier 1 (AT1) bonds are special bonds issued by banks under the Basel III framework to strengthen their capital. These are perpetual bonds and form part of a bank’s core capital. During periods of financial stress, and with the approval of the Reserve Bank of India (RBI), these bonds can either be written down or converted into equity. Public sector banks commonly use AT1 bonds to meet Basel III capital adequacy norms.
SBI Share Price Performance
SBI shares closed 0.10% higher at ₹1,013.80 on the BSE. The stock touched its 52-week high of ₹1,234.80 in February 2026 and its 52-week low of ₹786.55 in August 2025. Over the last one month, the stock declined by 2%. It fell 7% in the last three months and 5% in the last six months. However, it has gained 27% over the past one year and 129% over the last five years.
