SBI Board Approves ₹60,000 Crore Fund Raising Plan for FY27

Mumbai, June 18, 2026: State Bank of India (SBI), the country's largest lender, has approved a massive fundraising plan of up to ₹60,000 crore during FY2026-27 through various debt instruments, including Basel III-compliant Additional Tier-1 (AT1) and Tier-2 bonds.

The approval was granted by the bank's Central Board during its meeting held on Thursday, June 18, 2026. The development follows SBI's earlier intimation dated June 15, 2026, regarding the scheduled board meeting.

SBI to Raise Funds Through Multiple Debt Instruments

According to the regulatory filing submitted to the stock exchanges, SBI plans to mobilize funds in Indian rupees and/or other convertible currencies by issuing:

• Long-Term Bonds;

• Basel III-compliant Additional Tier-1 (AT1) Bonds;

• Basel III-compliant Tier-2 Bonds; and

• Other eligible debt instruments.

The fundraising exercise, amounting to up to ₹60,000 crore, may be undertaken through public issues or private placements and will target both domestic and overseas investors. The plan is subject to approval from the Government of India wherever required.

Strengthening Capital Base and Supporting Growth

The proposed bond issuances are expected to strengthen SBI's capital position and support its future credit growth. Basel III-compliant AT1 and Tier-2 bonds are widely used by banks to enhance capital adequacy and meet regulatory requirements while maintaining balance-sheet flexibility.

The move comes amid rising credit demand and continued focus on maintaining robust capital buffers in line with global banking standards.

Board Meeting Details

SBI informed that the Central Board meeting commenced at 10:00 AM and concluded discussions on the fundraising proposal at 1:15 PM on June 18, 2026.

Key Highlights

• Fundraising Size: Up to ₹60,000 crore.

• Instruments: Long-term bonds, Basel III AT1 Bonds, Tier-2 Bonds and other debt instruments.

• Mode of Issue: Public issue and/or private placement.

• Investor Base: Domestic and overseas investors.

• Timeline: During FY2026-27.

• Regulatory Requirement: Subject to Government of India approval wherever necessary.

What It Means for Investors

SBI's decision to raise capital through bond issuances reflects the bank's strategy to maintain strong capital adequacy and support business expansion. The fundraising is not an equity dilution exercise and is aimed at enhancing the lender's financial strength while meeting regulatory norms.

As India's largest public sector bank continues to expand its loan book, the additional capital is expected to provide greater flexibility to fund growth opportunities and reinforce investor confidence.