SBI Plans First Rupee-Denominated Perpetual Debt Issue of 2026
Key Takeaways
- •State Bank of India aims to raise 50 billion rupees through rupee-denominated perpetual bonds.
- •The planned bond sale is expected to close within two weeks or by early August.
- •The securities will be Basel III-compliant and include a five-year call option for the issuer.
- •Perpetual bonds have no fixed maturity date and can support banks’ capital-management needs.
- •Canara Bank was the most recent lender to issue similar bonds, according to the report.
State Bank of India plans to issue rupee-denominated perpetual bonds in the coming weeks, aiming to raise 50 billion rupees, The Economic Times reported.
The proposed issuance by the country's largest lender is expected to be completed within two weeks, or by early August. The bonds will be Basel III-compliant and will include a five-year call option, a feature that gives the issuer the right, but not the obligation, to redeem the securities after that period.
Perpetual bonds do not carry a fixed maturity date. For banks, Basel III-compliant capital instruments are issued under global regulatory standards designed to strengthen capital positions, making such debt part of lenders' broader capital-management toolkit.
According to the report, Canara Bank was the last lender to tap the market for similar bonds, doing so in November 2025.