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

Why in News	Key Points
SBI Raises ₹50,000 Crore via Bonds in FY25	Amount Raised: ₹50,000 crore through domestic bonds in FY25. Types of Bonds Issued: AT1 bonds (₹5,000 crore), Tier 2 bonds (₹15,000 crore), Long-term bonds (₹30,000 crore). Investor Interest: Oversubscribed 2x, key investors include provident funds, pension funds, insurance companies, mutual funds, and banks. Tenure of Bonds: 15 years for Tier 2 and Long-term bonds, perpetual for AT1 bonds. Ratings: Tier 2 and Long-term bonds rated AAA, AT1 bonds rated AA+. SBI’s Role: Largest lender in India, pivotal in raising funds for infrastructure and long-term growth.
Collaboration with Muthoot Microfin	Loan Amount: ₹500 crore co-lending initiative. Target Beneficiaries: Rural entrepreneurs, women, Joint Liability Groups (JLGs). Loan Range: ₹50,000 to ₹3 lakh. Focus Area: Empowering women and supporting small businesses in rural India. Loan Disbursement: In tranches of ₹100 crore.
Key Financial Details	Tenure of Bonds: 15 years for Tier 2 and Long-term bonds; perpetual for AT1 bonds. SBI Chairman: CS Setty.