SBI to Raise ₹20,000 Crore via Bonds; Shares Jump 2%
India’s largest lender, State Bank of India (SBI), has announced plans to raise up to ₹20,000 crore through long-term infrastructure bonds in financial year 2025–26 (FY26). The fundraising aims to support infrastructure and affordable housing lending, reinforcing SBI’s growth strategy in the debt market.
The move was well received by investors, pushing the SBI share price up by 2% in intraday trading on the BSE. The announcement reflects SBI’s continued focus on strengthening its long-term funding profile while supporting India’s developmental priorities.
In a regulatory filing, SBI stated:
“The Executive Committee of the Central Board is scheduled to meet on July 19, 2025, to consider, and if thought fit, approve the raising of long-term bonds up to an amount of ₹20,000 crore through a public issue or private placement during FY26.”
These infrastructure bonds are expected to carry tenures of seven years or more, allowing the bank to offer targeted financing in sectors like real estate, roads, power, and transport — all critical to India’s economic momentum.
Stock Market Response
Following the announcement, SBI’s share price surged by 2%, closing at ₹840.40 on the NSE. Analysts view the bond issue as a strategic move to ensure sustained liquidity without significantly impacting cost of funds.
Why This Matters
SBI’s bond issuance aligns with the broader government vision of mobilizing capital for infrastructure growth. With bond yields relatively stable and demand from institutional investors high, this move positions SBI favorably in both credit markets and investor sentiment.
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(FAQ) – FREQUENTLY ASKED QUESTIONS
Q1: Why is SBI raising ₹20,000 crore through bonds?
A1: SBI is raising funds to support infrastructure and affordable housing finance in FY26, aligning with national development priorities.
Q2: How will this affect SBI’s share price?
A2: Investors responded positively, with SBI’s stock rising by 2%. Analysts expect the bond issuance to enhance funding efficiency.
Q3: What are infrastructure bonds?
A3: Infrastructure bonds are long-term debt instruments used to fund large-scale infrastructure projects. They often come with tax benefits and are seen as low-risk.
Q4: When will the bond issuance be finalized?
A4: The proposal will be discussed and likely approved in the Executive Committee meeting scheduled for July 19, 2025.
Q5: Is this good news for investors?
A5: Yes, because SBI’s fundraising initiative signals robust growth plans, financial health, and strategic alignment with government initiatives.
Published on:July 16,2025
Published by :Selvi
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