State Bank of India (SBI) is set to raise a substantial Rs 20,000 crore through bonds, a move that immediately boosted its share price by over 2% on Wednesday.
SBI’s Ambitious Fundraising Plan
The State Bank of India announced its intention to raise up to Rs 20,000 crore from domestic investors during the current financial year (FY26). This significant capital injection will be achieved through the issuance of Basel III compliant Additional Tier 1 and Tier 2 Bonds.
The decision was approved by the bank’s board on July 16, 2025. This fundraising is subject to approval from the Government of India where required, ensuring compliance with all necessary regulations.
Share Price Climbs on News
Following the announcement, SBI shares saw a positive reaction in the market. The stock climbed over 2 percent, trading at Rs 833.55 per share around 2:19 pm on Wednesday.
This surge pushed the PSU bank’s total market capitalization to an impressive Rs 7,44,000.95 crore, as reported by the NSE.
A Look at SBI’s Recent Performance
SBI, a key component of the BSE Sensex, has shown a mixed bag of returns over different periods. In the short term, the shares have been performing well, with positive returns of 2.76 percent in the last week and 2.46 percent over two weeks.
Over the past month, SBI shares rose by 5.09 percent, and over three months, they gained 7.96 percent. However, looking at the last year, the stock experienced a decline of 5.41 percent.
Despite the recent dip, SBI’s long-term performance remains robust. Over the past two years, shares have gained 42.56 percent, and an impressive 73.95 percent over three years. For long-term investors, the returns are even more significant, with a gain of 347.48 percent over five years and 206.61 percent over the last decade.
Understanding Shareholder Returns: Dividends
SBI has a consistent history of paying dividends to its shareholders. The bank paid a dividend of Rs 15.90 in May 2025.
Prior to this, it distributed Rs 13.70 in 2024, Rs 11.30 in 2023, Rs 7.10 in 2022, and Rs 4 in 2021. This demonstrates a trend of increasing dividend payouts over the years.
At the current market price, SBI’s dividend yield stands at 1.91 percent. It’s worth noting that SBI has never issued bonus shares to its shareholders.
- SBI plans to raise Rs 20,000 crore through bonds in FY26.
- The announcement led to a 2% jump in SBI’s share price.
- The bank has a strong long-term share performance, despite a slight dip in the last year.
- SBI consistently pays dividends, with a growing trend in recent years.
This fundraising initiative is expected to further strengthen SBI’s financial position, supporting its growth objectives in the coming fiscal year.
