State Bank of India makes a corporate announcement

The issuance carries a 7.05% annual coupon and a 10-year tenor, with a call option after five years and on each anniversary thereafter ^[1].

Compared with SBI’s previous Tier 2 issuance in FY26:

• Previous issue: 6.93% coupon, 10-year tenor, issued in October 2025 ^[2].
• Current issue: 7.05% coupon, 10-year tenor ^[1].
• Derived pricing difference: the current issue is 12 bps higher than the previous issue, calculated as 7.05% minus 6.93%.

Because both issues have the same 10-year tenor, the coupon comparison is broadly like-for-like. However, the filings report coupon rates rather than the spread over a specified G-sec or benchmark yield; therefore, the 12 bps figure is the coupon differential, not a benchmark spread differential.

The bonds in question were Basel III Additional Tier 1 (AT1) bonds, not Tier 2 bonds. Therefore, the projected accretion to SBI’s Tier 2 capital ratio is nil; the issue strengthens Tier 1 capital instead. SBI raised and fully utilized ₹4,691 Cr through this AT1 issue on 30 July 2026. ^[3]

SBI’s latest reported Q2 FY27 ratios were:

• Tier 2 capital ratio accretion: 0.0 pp, because the bonds qualify as AT1, not Tier 2 capital.
• Overall CAR accretion: Cannot be quantified from the reported figures alone. Mechanically, assuming the entire issue is recognized as regulatory capital and risk-weighted assets are unchanged, the uplift would be:

`CAR accretion = ₹4,691 Cr / risk-weighted assets × 100`

• Reported Q2 FY27 CRAR: 16.09%, compared with 15.67% in Q1 FY27, an increase of 42 bps QoQ. ^[4]

The 42 bps improvement should not be attributed entirely to the AT1 allotment: it also reflects changes in retained earnings, risk-weighted assets and other capital movements during the quarter. The latest results do not provide the risk-weighted-asset denominator or a standalone bridge isolating the ₹4,691 Cr issue’s contribution. The issue therefore supports the reported CAR, but a precise incremental CAR percentage could not be confirmed.

Yes. The ₹10,000 Cr allotment aligns with the FY25 plan: it represents 50.0% of the board-approved ₹20,000 Cr ceiling for long-term bonds. The board approval covered up to ₹20,000 Cr during FY25 ^[5], while the July 11 allotment was ₹10,000 Cr ^[6].

Unutilized limit post-allotment: ₹10,000 Cr, or 50.0% of the approved limit, derived as ₹20,000 Cr minus ₹10,000 Cr ^{[5] [6]}. This is the balance immediately after the specified allotment, before considering any subsequent FY25 long-term bond issuances.