Shares of State Bank of India gained over 2% on Wednesday, July 16 after the lender said it will be raising funds via bonds worth up to ₹20,000 crore in the ongoing fiscal.SBI informed the exchanges that its Central Board approved the fund raise by issue of Base III compliant additional Tier 1 and Tier 2 bonds to domestic investors during the financial year 2026.
The same is subject to the Central government’s approval, wherever required, it added.
On another note, SBI is set to launch a ₹25,000 crore qualified institutional placement (QIP) on Wednesday, July 16, according to sources. This marks its first equity fundraising since 2017.SBI is expected to offer a slight discount to the current market price for the issue.
Life Insurance Corporation of India (LIC) is likely to be a key participant, with a potential bid of over ₹5,000 crore.Strong interest is also being seen from domestic mutual funds.

The capital raise is aimed at strengthening the bank’s capital base, rather than funding growth.

CNBC-TV18 reached out to both SBI and LIC for comments; their responses are awaited.

Out of the 50 analysts that have coverage on SBI, 40 of them have a ‘Buy’ rating on the stock, while nine of them have a ‘Hold’ rating and one has a ‘Sell’ rating.

SBI shares were up 2.04% at 833.1 apiece at 2.15 pm on Wednesday, July 16. The stock has gained 4% in the past month.

Also Read: ‘Stable, good quality’ Q1 results — Analysts see 19% upside on this life insurance stock

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SBI shares gain 2% after board approves ₹20,000 crore fund raise via bonds

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