SBI Raises ₹50,000 Crore via Bonds in FY25, Strengthens Rural Credit Access

State Bank of India (SBI), the country’s largest lender, has raised ₹50,000 crore in FY25 through a series of domestic bond issuances, marking a significant milestone. This achievement highlights SBI’s strong financial position and its ongoing efforts to support economic growth and financial inclusion, particularly in underserved rural areas. The raised funds are earmarked for long-term development, infrastructure projects, and strategic partnerships that empower rural entrepreneurs, including women and small businesses.

Key Details of SBI’s Bond Issuances

SBI raised ₹50,000 crore in FY25 through three primary types of bonds:

• AT1 Bonds: ₹5,000 crore, perpetual with a call option after 10 years.
• Tier 2 Bonds: ₹15,000 crore, with a 15-year tenure and a call option after 10 years.
• Long-Term Bonds: ₹30,000 crore, with a 15-year tenure.

The bond issues were oversubscribed more than two times, showcasing strong interest from institutional investors, including provident funds, pension funds, and mutual funds. The bonds received high ratings: AAA for Tier 2 and Long-Term Bonds, and AA+ for AT1 Bonds, underscoring SBI’s robust financial stability.

Empowering Rural Entrepreneurs

SBI’s Collaboration with Muthoot Microfin

In addition to raising funds, SBI has partnered with Muthoot Microfin to disburse ₹500 crore in affordable loans to rural entrepreneurs, especially targeting women and small businesses. This initiative supports financial inclusion, offering loans ranging from ₹50,000 to ₹3 lakh to Joint Liability Groups (JLGs) and agricultural ventures.

Loan Disbursement: The partnership focuses on making loans accessible in tranches of ₹100 crore.

Empowering Women: The initiative prioritizes empowering women entrepreneurs, contributing to socio-economic growth in rural India.

Summery of the news