Synopsis:
SBI shares rose over 2% to Rs 834 on July 16 after the board approved raising Rs 20,000 crore via Basel III-compliant bonds in FY26, its first major fundraising since 2017. The move aims to bolster the bank’s capital adequacy.
The shares of a leading public sector bank were in focus after its board approved raising Rs 20,000 crore through bonds, marking its first major capital-raising move since 2017 to strengthen its capital base in line with regulatory norms.
With a market capitalisation of Rs 7,43,867 Crores, the share price of State Bank of India jumped over 2% on Wednesday to hit an intraday high of Rs 834.00 per share from the previous day’s closing price of Rs 816.75 per share.
What’s the News
Shares of State Bank of India (SBI) were in focus on July 16 after the bank’s Central Board approved raising up to Rs 20,000 crore via Basel III-compliant Additional Tier 1 and Tier 2 bonds during FY26. The funds will be raised in Indian rupees from domestic investors, subject to government approvals where required.
This marks SBI’s first major capital-raising initiative through bonds since 2017, aimed at strengthening its capital base amid evolving regulatory norms. The move is intended to shore up the bank’s capital adequacy rather than fund expansion or growth activities.
In a separate development earlier this year, SBI’s board also approved an equity capital raise of up to Rs 25,000 crore in FY26 through Qualified Institutional Placement (QIP), Follow-On Public Offer (FPO), or other routes. This initiative targets improvement in the Common Equity Tier 1 (CET1) ratio, a key measure of financial resilience.
About the Company
State Bank of India (SBI) is India’s largest and oldest public sector bank, with a legacy of over 200 years. Headquartered in Mumbai, it is a Fortune 500 company and a trusted name in banking for generations. SBI serves over 50 crore customers with a massive network of more than 22,500 branches, 63,500+ ATMs, and 82,900+ business correspondent outlets across India.
With an asset base of over Rs 61 trillion, SBI offers a wide range of banking and financial services, including personal banking, loans, insurance, mutual funds, and credit cards through its subsidiaries like SBI Life Insurance, SBI Mutual Fund, SBI General Insurance, and SBI Card.
The bank also has a global presence with 241 offices in 29 countries. Focused on innovation, customer service, and sustainability, SBI continues to lead India’s banking sector.
The company reported a revenue of Rs 490,938 crore in FY25, up by 40.4 percent from its FY24 revenue of Rs 439,189 crore. Coming to its profitability, the company reported a net profit rise of 71.7 percent to Rs 80,523 crore in FY25 from Rs 69,543 crore in FY24. The stock delivered an ROE and ROCE of 17.2 percent and 6.47 percent, respectively.
Written By Rohan Pandey
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