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

State Bank of India is set to become the first bank to tap the market for perpetual bonds in 2026, with plans to raise 50 billion rupees ($517.76 million) within the ‌next two ⁠weeks, ⁠three bankers familiar with the matter said on Friday.

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.


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.