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SBI Raises ₹25,000 Crore via QIP in Record-Breaking Capital Infusion.

Banking & Finance | Dated: 22 Jul 2025

State Bank of India recently raised ₹25,000 crore by issuing 305.9 million shares through a Qualified Institutional Placement (QIP) priced at ₹817 per share. Launched on 16 July 2025, this is India’s largest-ever QIP, reflecting strong institutional confidence and aiming to bolster SBI’s capital base.

🎯 Key Highlights:

  • - The QIP, initiated on 16 July 2025, represents SBI’s first equity capital raise in eight years, marking a major initiative to strengthen its Common Equity Tier‑1 (CET‑1) buffer and support future credit expansion. The issue was priced at ₹817, slightly below the market rate, to attract deeper investor participation.
  • - SBI offered 305.9 million new shares to institutional investors including foreign long-term funds, LIC, mutual funds and sovereign wealth funds. This comprehensive engagement led to oversubscription, with total bids reaching ₹1.10 lakh crore—over 4.5 times the quota.
  • - The capital raised elevated SBI’s CET‑1 ratio from 10.81% to approximately 11.5%, though still trailing the private sector average of ~14%. This positions SBI to support a planned ₹8 trillion (≈ $93 billion) loan growth, while preparing for future requirements under Basel III regulations.

💡 Other Important Facts:

  • (i) Life Insurance Corporation of India (LIC) emerged as a prominent anchor investor, acquiring shares worth ₹50,000 crore—boosting its stake from 9.21% to 9.49%. Other participants included BlackRock, Marshall Wace, HDFC Mutual, and Quant MF, demonstrating robust support from both domestic and global institutions.
  • (ii) SBI shortlisted six leading investment banks to manage the QIP: Citigroup, HSBC, Morgan Stanley, Kotak Investment Banking, ICICI Securities, and SBI Capital Markets. Legal advisors included Cyril Amarchand Mangaldas, Linklaters, Shearman & Sterling, and Allen & Overy.
  • (iii) Alongside the QIP, SBI's board has approved a ₹20,000 crore bond issuance in FY 2025–26 (Basel III-compliant Tier 1 & Tier 2), aiming for a total capital infusion of ₹45,000 crore. Estimates suggest the QIP will modestly reduce SBI’s Return on Equity (RoE) from ~17% to around 16%, aligning capital strength with sustainable growth strategy.

📚 Test Your Knowledge:

Recently, which Indian public sector bank raised ₹25,000 crore through the country’s largest-ever QIP issue?

Correct Answer: State Bank of India

🚀 Quick Recap:

About State Bank of India

  • Chairman : Challa Sreenivasulu Setty
  • Headquarter : Mumbai