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SBI Launches Rs. 25,000 Cr QIP to Raise Capital

  • 21 Jul 2025

On 16th July 2025, the State Bank of India (SBI), the country’s largest lender, launched a Qualified Institutional Placement (QIP) of up to Rs. 25,000 crore and also secured board approval to raise an additional Rs. 20,000 crore through bonds in FY26.

  • SBI has set the floor price for its QIP at Rs. 811.05 per equity share, which is a 2.5% discount to its closing share price of Rs. 831.55 on Wednesday.
  • The QIP is expected to significantly boost SBI’s Common Equity Tier 1 (CET1) capital ratio, which stood at 10.81% as on March 31, 2025.
  • The Rs. 25,000 crore QIP is poised to become the largest domestic equity share sale to institutional investors, surpassing Coal India’s Rs. 22,560 crore QIP in 2015.
  • The government’s ownership in SBI, which was 57.43% as on March 31, 2025, will reduce as a result of the equity dilution from the QIP.
  • SBI also announced that its board has approved a plan to raise up to Rs. 20,000 crore through the issuance of Basel III-compliant additional tier 1 and tier 2 bonds during the current fiscal year.
  • The funds raised through both QIP and bonds will strengthen SBI’s capital base and enable it to meet regulatory capital requirements and support future growth.