SBI board clears ₹20,000 crore fundraising plan; share rises 2%

Shares of State Bank of India (SBI) , the country’s largest lender, rose 2% on Wednesday after the lender's board approved a proposal to raise up to ₹20,000 crore through the issuance of debt instruments during the current financial year. The move is being seen as part of SBI’s ongoing capital-raising efforts to strengthen its balance sheet, support business growth, and maintain adequate capital buffers in line with regulatory norms.

Cheering the news, SBI share price climbed 2% to ₹833.90 on the BSE, while its market capitalisation increased to ₹7.42 lakh crore.

In a regulatory filing, the public sector bank said that its central board, in a meeting today, granted approval for raising funds in Indian rupees by issuing Basel III-compliant Additional Tier 1 and Tier 2 bonds. The fundraising will be conducted through offerings to domestic investors in FY26, subject to approvals from the government of India wherever required.

“The Central Board of the Bank in its meeting held today i.e. 16.07.2025, inter alia, accorded approval for raising funds in INR by issue of Basel III compliant Additional Tier 1 and Tier 2 Bonds, up to an amount of ₹20,000 Crores to domestic investors during FY26, subject to GOI approval wherever required,” SBI said in an exchange filing today.

In a meeting on May 20, the central board of SBI had approved a proposal to examine the status and decide on raising long-term funds of up to US$3 billion. This fundraise could be in single or multiple tranches during fiscal year 2025-26. The funds will be raised through a public offer or private placement of senior unsecured notes in U.S. dollars or other major foreign currencies, the lender had said in a regulatory filing. 

As per report, SBI mobilised over ₹50,000 crore during the fiscal year 2024–25 via bond issuances.

For January-March quarter of FY25, SBI reported 10% decline in its standalone net profit at ₹18,643 crore as compared to ₹20,698 crore in the year ago period. The total income jumped 12% to ₹1.43 lakh crore from ₹1.28 lakh crore in the same period last year. During the quarter under review, the bank earned an interest income of ₹1.20 lakh crore as against ₹1.11 lakh crore in Q4 FY24.

On the asset quality front, the PSU lender saw an improvement, with gross non-performing assets (NPAs) dropping to 1.82% of the total advances in the fourth quarter from 2.24 % as of March 31, 2024. In a similar trend, net NPAs too declined to 0.47% as against 0.57% in Q4 FY24.

For the full financial year 2024-25, SBI posted a net profit of ₹70,901 crore, up 16% from ₹61,077 crore in FY24. The bank also announced a final dividend of ₹15.90 per equity share for the financial year ending March 31, 2025, marking a payout of 1,590% on its ₹1 face value share. It paid out a total of ₹8,076.84 crore in dividends to the Government of India for FY 2025, a rise from ₹6,959 crore in the previous year.

 (DISCLAIMER: The views and opinions expressed by investment experts on fortuneindia.com are either their own or of their organisations, but not necessarily that of fortuneindia.com and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)