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12-10-2025
Bureau Report
NEW DELHI/ MUMBAI: India’s largest bank is set to return to the rupee debt market after a year with plans to raise funds through Basel III-compliant tier II bonds this month, three sources familiar with the matter said on Friday.
State Bank of India, opens new tab is in advanced stages of issuing the bonds with a 10-year duration to raise as much as 75 billion rupees (about $845.7 million), the sources said. The lender may invite bids before the end of the month, they added.
SBI did not immediately respond to a media request for comment. The sources declined to be named as they are not authorized to speak to media.
The bonds will have a call option at the end of five years, and at the end of every year thereafter, the sources said.
“The issue would be priced as per a five-year instrument and currently, there is sufficient gap between five-year and 10-year bond yields, which must have pushed them towards the shorter tenor,” one of the sources said.
Merchant bankers said that mutual funds could bid aggressively for the issue.
SBI had planned the tier II bond issue by August but delayed it due to the rise in yields. The bank also shelved an infrastructure bond issue in March due to elevated yields.
Earlier, UTI Asset Management Company has temporarily suspended fresh lump-sum and switch-in investments into the UTI Silver ETF Fund of Fund, effective October 13, 2025, the company said in a statement on Saturday.
“Therefore, the premium in domestic silver prices directly impacts the valuation of the scheme.”
UTI is the second fund manager to curb new investments into silver-based funds this week. On Thursday, Kotak Mahindra Asset Management Company also temporarily suspended new investments into a Silver ETF Fund of Fund.
Kotak said it would read more within the next couple of weeks as supply improves after the Hindu festival of Diwali.
Spot silver hit a record high of $51.22 per ounce on Thursday, surpassing the $51 per ounce level for the first time.
In India, the world’s biggest silver consumer, silver’s premium over official domestic prices jumped as much as 10% on Thursday because of strong investment demand ahead of a key festival and limited supplies, bullion dealers said.
Kotak Mahindra Asset Management Company (KMAMC) has temporarily suspended fresh lump-sum and switch-in investments into the Kotak Silver ETF Fund of Fund, effective October 10, 2025, the company said in a statement on Thursday.
This is primarily due to a shortage of physical silver in the domestic market that lifted premium sharply above benchmark prices, Kotak said.
The statement added that silver is trading at a premium relative to international prices. Spot silver hit a record high of $51.22 per ounce on Thursday, surpassing the $51 per ounce level for the first time.
In India, the world’s biggest silver consumer, silver premium over official domestic prices jumped as much as 10% on Thursday because of strong investment demand ahead of a key festival and limited supplies, bullion dealers said.
“Kotak Silver ETF is an open-ended Exchange Traded Fund replicating/tracking price of Silver, which reflects the domestic price of silver. Therefore, the premium in domestic silver prices directly impacts the valuation of the Scheme,” the company said.
It added that the suspension is temporary in nature and will continue only until further notice in this regard.
