State Bank of India (SBI), the country’s largest public sector lender, on July 16 said that its board has approved to raise funds up to Rs 20,000 crore via bonds in FY26.
In its exchange filing, SBI said its Central Board has approved the proposal to raise funds through Basel III-compliant Additional Tier 1 and Tier 2 Bonds in Indian rupees. The bank clarified that the issuance will be subject to approval from the Government of India wherever required.
Earlier in May, SBI’s Executive Committee had cleared a proposal to explore long-term fundraising of up to $3 billion during FY26. The funds are proposed to be raised in one or more tranches, through a public offer or private placement of senior unsecured notes denominated in US dollars or other major foreign currencies, the bank had said in an earlier exchange filing.
SBI Share Price Jumps 2%
Following this announcement, SBI’s share price jumped over 2 per cent to hit an intraday high of Rs 834.20 per share on the National Stock Exchange (NSE).
At close, the bank’s shares last traded at Rs 830.50 apiece on the NSE, up 1.72 per cent from previous close of Rs 816.45 apiece.
SBI Share Price History
The bank’s shares have been moving sideways for the past six months. At its current price, the stock is trading at a discount of 7.52 per cent from its 52-week high of Rs 899. From its 52-week low of Rs 734.80, the stock is up by 13.15 per cent.
SBI’s shares have lagged behind its peers, delivering 4.7 per cent returns year-to-date (YTD) and a negative return of 5.7per cent over the past one year. Meanwhile, Nifty PSU Bank, where SBI holds the majority 32.66 per cent weight, has surged over 11 per cent so far this year. On a one-year basis, the index delivered a negative return of 1.87 per cent.
Looking at the five-year performance, SBI has lagged here as well, delivering 341 per cent returns compared to the Nifty PSU Bank index’s 407 per cent gain.
