SBI Raises Rs 7,500 Crore via Basel III Tier 2 Bonds
The bonds, which are non-convertible, taxable, redeemable, subordinated, unsecured, and fully paid-up, carry a face value of Rs 1 crore each and offer an annual coupon rate of 6.93%.
Mumbai, October 20, 2025 — The State Bank of India (SBI), the country’s largest public sector bank, has successfully raised Rs 7,500 crore through the issuance of Basel III compliant Tier 2 bonds. The allotment was finalized today, as per the bank’s official communication to the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
The bonds, which are non-convertible, taxable, redeemable, subordinated, unsecured, and fully paid-up, carry a face value of Rs 1 crore each and offer an annual coupon rate of 6.93%. A total of 7,500 bonds were issued, with both the opening and closing of the issue occurring on October 17, 2025.
These Tier 2 bonds are part of SBI’s strategy to strengthen its capital base in line with Basel III norms. The redemption date is set for October 20, 2035, with a call option available after five years and on each anniversary thereafter.
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