Current Affairs - Banking - Discussion

State Bank of India (SBI) is set to become the first Indian bank in 2026 to issue Basel III-compliant Additional Tier-I (AT-1) Perpetual Bonds. Through this issuance, SBI plans to raise ₹5,000 crore as part of its ₹60,000 crore capital-raising programme for FY 2026–27. The bonds will include a five-year call option, subject to regulatory approval. AT-1 Perpetual Bonds help banks strengthen their capital base, improve the Capital Adequacy Ratio (CAR), comply with Basel III regulations, and enhance their capacity to absorb financial losses. The initiative will also support SBI's future lending, business expansion, and long-term financial resilience.