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SBI is set to become the first Indian bank in 2026 to issue Basel III-compliant Additional Tier-I (AT-1) Perpetual Bonds, raising ₹5,000 crore.
The bonds carry a five-year call option, subject to RBI approval, and are part of SBI's Board-approved ₹60,000 crore capital-raising plan for FY 2026-27.
Canara Bank was the last Indian bank to issue AT-1 bonds, raising ₹3,500 crore in November 2025 at a 7.55% coupon.
SBI's previous Perpetual Bond issue was in October 2024: ₹5,000 crore at 7.98% with a 10-year call option.
Debt instruments issued by banks under the Basel III framework to strengthen Additional Tier-I capital. They have no fixed maturity date but usually carry a call option letting the issuer redeem them after a set period with regulatory approval. They help banks improve their Capital Adequacy Ratio (CAR) and absorb losses during stress.
Simple Analogy: Like a loan the bank never has to repay unless it chooses to exercise a buy-back option — but the lender keeps earning interest indefinitely until then.
SBI raised ₹5,000 crore at 7.98% coupon with a 10-year call option
Canara Bank raised ₹3,500 crore at 7.55% coupon
SBI to raise ₹5,000 crore, first Indian bank to do so in 2026
Banking Awareness > Capital Adequacy & Basel Norms
GS Paper III > Indian Economy > Banking Sector
Basel III capital instruments classified as Additional Tier-I capital, perpetual in nature with an optional call date
A measure of a bank's available capital relative to its risk-weighted assets