SBI to issue first rupee-denominated perpetual debt of 2026: Report

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The country's largest lender is in advanced talks with merchant bankers and investors to issue Basel III-compliant additional Tier I perpetual bonds with a five-year call option, the bankers said.
"If things work out, the bank should complete the issuance next week or at least before the central bank's monetary policy decision on August 5," one of the bankers said.
State Bank of India plans to issue perpetual bonds soon. The bank aims to raise fifty billion rupees within two weeks. This issuance will be Basel III-compliant with a five-year call option. The country's largest lender expects to complete this by early August. Canara Bank last tapped the market for similar bonds in November 2025.
The bankers requested anonymity as the matters are private, while SBI did not reply to a Reuters email seeking comment.
State-run Canara Bank was the last lender to tap the market, raising 35 billion rupees through Basel III-compliant additional Tier I perpetual bonds at a 7.55% coupon in November 2025.
SBI last issued perpetual bonds in October 2024, raising 50 billion rupees at a 7.98% coupon with a 10-year call option.
In June, SBI's board approved raising up to 600 billion rupees through debt this financial year, including long-term infrastructure bonds, Basel III-compliant additional Tier I securities and Tier II instruments.
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