New Delhi, July 16 -- Shares of State Bank of India (SBI) surged 2 percent during intraday trading on Tuesday, July 16, following the bank's approval to raise Rs.20,000 crore through bond issuance. This marks SBI's first significant capital-raising initiative since 2017, aimed at reinforcing its capital base amid regulatory requirements.

In a regulatory filing, SBI confirmed that its Central Board approved the raising of up to Rs.20,000 crore during the current financial year through Basel III-compliant Additional Tier 1 and Tier 2 bonds. These bonds will be issued in Indian rupees to domestic investors, subject to government approvals where necessary. The move primarily focuses on strengthening the bank's capital base rather than financ...