SBI shares are up 2% today: What's the reason?
What's the story
Shares of the State Bank of India (SBI) rose by over 2% during intraday trading today. The surge comes after the bank's board approved a plan to raise up to ₹20,000 crore via bond issuance. This is SBI's first major capital-raising effort since 2017 and is aimed at strengthening its capital base in line with regulatory requirements.
Fundraising strategy
SBI to raise ₹20,000cr through bonds
In a regulatory filing, SBI announced that its Central Board has approved the plan to raise up to ₹20,000 crore in the current financial year. The funds will be raised using Basel III-compliant Additional Tier 1 and Tier 2 bonds. These bonds will be issued in Indian Rupee and are aimed at strengthening the bank's capital base rather than funding expansion or growth activities.
Equity raise
Plan to raise equity capital
Separately, in May 2025, SBI's board approved a plan to raise equity capital of up to ₹25,000 crore during FY2026. This will be done through one or more tranches via Qualified Institutional Placement (QIP), Follow-On Public Offer (FPO), or other permissible methods. The move is aimed at raising SBI's Common Equity Tier 1 (CET1) capital ratio—a key measure of the bank's financial health.
Stock outlook
Stocks on an upward trajectory
After the bond announcement, SBI's stock hit a day's high of ₹833.90, just shy of its 52-week high of ₹898.80 in July 2024. The stock is some 7% away from that peak after touching a 52-week low of ₹679.65 in March 2025. In recent months, SBI shares have been on an upward trajectory.