In a filing to stock exchanges, State Bank of India said its Central Board, at a meeting held on June 18, cleared proposals to raise funds in Indian rupees and/or other convertible currencies via issuance of debt securities.
The instruments may include long-term bonds, Basel III-compliant Additional Tier 1 bonds, and Basel III-compliant Tier 2 bonds.
The bank said the fundraising can be carried out through public issue or private placement and may involve both domestic and overseas investors. The proposal will be implemented during FY27, subject to approvals from the Government of India wherever required.
The board meeting began at 10:00 am and concluded at 1:15 pm, according to the regulatory disclosure.
Last week, global brokerage Jefferies reiterated its positive view on SBI. Jefferies has a “Buy” rating on SBI with a price target of ₹1,300 per share, implying a potential upside of around 30% from current levels.
The brokerage said sustaining net interest margins (NIMs) will largely depend on the bank’s ability to reprice its corporate loan book. According to its asset repricing analysis, deposits are likely to mature faster than assets, which could result in quicker repricing of deposits and put pressure on margins.
Despite this, Jefferies remains constructive on SBI’s outlook, citing the bank’s consistent improvement in deposits per branch, lower reliance on priority sector lending certificates (PSLCs), growing fee income from bancassurance partnerships and limited buffer provisions.
The brokerage highlighted the transition to the expected credit loss (ECL) framework as a potential risk factor, although it does not see it materially altering the broader investment thesis.
