SBI raises ₹4,691 crore through AT-1 bonds at 7.75% coupon

State Bank of India (SBI) has raised ₹4,691 crore through its first Additional Tier-1 (AT-1) bond issue of FY27, the country's largest lender said in a statement on 30 July. The bonds carry a coupon rate of 7.75% and include a five-year call option.

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The issue had a base size of ₹3,000 crore along with a greenshoe option of ₹2,000 crore. The bonds have been rated AA+ by Crisil Ratings and Care Ratings.

Issue attracts strong investor demand

The bond sale received bids worth more than twice the base issue size, according to SBI. The bank said it received 89 bids from qualified institutional investors, including provident funds, pension funds, mutual funds and banks.

SBI Chairman C.S. Setty said the issuance helped the bank diversify its sources of long-term non-equity regulatory capital.

Part of larger fundraising plan

The fundraising comes after SBI's board approved plans in June to raise up to ₹60,000 crore through various debt instruments during FY27, including AT-1 and Tier-II bonds.

According to SBI, the bank raised ₹18,500 crore through domestic bond issuances in FY26.

AT-1 and Tier-II bonds form part of banks' regulatory capital requirements under Basel III norms. These instruments are commonly used by lenders to strengthen capital buffers, support credit growth and diversify funding sources.

Capital position and growth plans

As of 31 March, SBI's capital-to-risk weighted assets ratio stood at 15.40%, while its Common Equity Tier-I ratio was 12.29% and overall Tier-I ratio was 13.33%, according to data cited by Mint.

The bank has also approved plans to raise up to $2 billion through overseas bond issuances in FY27. SBI last tapped international bond markets in September 2025, raising $500 million through a five-year dollar-denominated bond at a coupon rate of 4.5%, according to Mint.

Credit growth remains in focus

SBI reported a 17% year-on-year rise in gross advances to ₹49.32 trillion and an 11% increase in deposits to ₹59.75 trillion for the March quarter, according to company disclosures cited by Mint.

The lender has retained its FY27 credit growth guidance of 13-15%. SBI management has said banking system credit growth is expected to be around 13-14% during the current financial year, while deposit growth is projected at 11-12%.

The latest bond issue is part of SBI's broader effort to support balance-sheet growth and meet regulatory capital requirements amid continued demand for credit.