SBI FY27 fundraise: Board clears ₹60,000 crore debt

Board decision and regulatory filing

State Bank of India (SBI) said its Central Board, at a meeting held on 18 June 2026, approved a plan to raise funds through debt instruments during FY27. The total fundraising approved is up to ₹60,000 crore. SBI disclosed that the capital may be raised in Indian rupees and or in other convertible currencies. The approval covers multiple formats of issuance rather than a single bond sale. The plan was communicated through a regulatory filing.

What SBI plans to issue

SBI said the proposed fundraising can be done through debt instruments including long-term bonds. It also includes Basel III-compliant Additional Tier 1 (AT1) bonds and Basel III-compliant Tier 2 bonds. These instruments are commonly used by banks to meet regulatory capital requirements. The plan keeps the instrument menu broad, which allows flexibility on timing and pricing. The bank did not disclose the exact mix of instruments within the overall ₹60,000 crore ceiling.

Currency, investors, and issuance routes

According to the disclosure, SBI can raise these funds in INR and or any other convertible currency. The issuance can be executed through a public offer or via private placement. SBI said the fundraising may be undertaken with Indian and or overseas investors during FY27. This structure gives the bank the option to tap domestic as well as international pools of capital. Any required approvals will be sought as needed.

Government approvals and conditions

SBI clarified that the fundraising is subject to Government of India approval wherever required. This is relevant for certain capital raising actions by state-owned entities. The filing did not specify a timeline for seeking these approvals, but the plan is framed for execution within FY27. The bank also noted that the board has accorded approval for raising funds up to the stated amount, indicating an enabling authorisation. Actual issuance would depend on market conditions and internal capital planning.

Market reaction: SBI shares move higher

SBI shares rose in trade on Thursday, 18 June, after the board-approved fundraising plan was announced. The stock rose as much as 1.8% to an intraday high of ₹1,045.7 per share. At around 2 PM, SBI was trading at ₹1,040.2 on the National Stock Exchange, up 1.33%. The move reflected investor attention on the bank’s capital planning for FY27. The disclosure was positioned as a fundraising plan for the current fiscal year 2026-27.

Why banks use AT1 and Tier 2 capital

The fundraising plan references Basel III-compliant AT1 and Tier 2 bonds, instruments used to strengthen a bank’s regulatory capital structure. AT1 bonds typically qualify as additional tier 1 capital under Basel norms, while Tier 2 bonds support the tier 2 capital bucket. By keeping both options open, SBI can choose between instruments depending on pricing, investor appetite, and regulatory considerations. The bank also included long-term bonds, which can be used for broader balance sheet funding needs. SBI stated that the move aims to bolster capital for future growth and meet Basel III regulatory requirements.

Recent precedent: SBI’s Tier 2 bond issuance details

Separately, SBI raised ₹6,051 crore at a coupon of 7.05% through its second Basel III-compliant Tier 2 bond issuance for FY26. The bonds carried a 10-year tenor with a call option after 5 years. The issuance attracted 47 institutional investors, including provident funds, pension funds, mutual funds, and banks. SBI received bids worth about two times the base issue size of ₹5,000 crore. Following the demand, the bank accepted ₹6,051 crore at the stated coupon rate.

Earlier board authorisation for FY26 bonds

The article also referenced an earlier board decision on 16 July 2025. SBI’s board had approved raising up to ₹20,000 crore in INR by issuing Basel III-compliant AT1 and Tier 2 bonds to domestic investors during FY26. That authorisation was also subject to Government of India approval wherever required. Together, these disclosures show a pattern of board-level fundraising approvals aligned to regulatory capital planning. The FY27 plan, however, is larger in size and explicitly includes the possibility of raising funds in convertible foreign currencies.

Key facts at a glance

Related data points: bond deal and stock move

Analysis: what the FY27 approval signals

The ₹60,000 crore board approval is an enabling step that gives SBI flexibility to access debt markets during FY27 through multiple capital instruments. By including long-term bonds alongside Basel III-compliant AT1 and Tier 2 bonds, SBI can choose instruments based on regulatory capital needs and investor demand. The plan also allows issuance in INR or other convertible currencies, widening potential investor participation beyond the domestic market. At the same time, SBI explicitly noted the requirement of Government of India approval wherever applicable, which is a key procedural condition. The market reaction on 18 June, with the stock trading higher intraday, indicated that investors were tracking the bank’s capital planning.

Conclusion

SBI’s Central Board has approved raising up to ₹60,000 crore in FY27 through long-term bonds and Basel III-compliant AT1 and Tier 2 bonds, via public issues or private placements, in INR and or other convertible currencies. The plan remains subject to Government of India approval wherever required. Execution details such as the timing, instrument mix, and final amounts would depend on subsequent issuance decisions made during FY27 under the board authorisation.