State Bank of India Raises ₹25,000 Crore in Landmark QIP, Largest in Indian Market History
In a historic fundraising feat, the State Bank of India (SBI) has successfully raised ₹25,000 crore through a Qualified Institutional Placement (QIP) of equity shares, making it the largest QIP in Indian capital markets to date.
The public sector banking giant’s board approved the issue of 30.6 crore equity shares at a price of ₹817 per share, well-received by both domestic and foreign investors.
📊 Strong Demand from Global Investors
The QIP witnessed robust demand, being oversubscribed 4.5 times, with 64.3% of bids from foreign investors. Long-term institutional investors secured 88% of the final allotment, with 24% going specifically to global long-term funds, highlighting strong global interest in India’s top bank.
SBI Chairman C.S. Setty remarked,
“This landmark equity raise is a vote of confidence in SBI’s solid fundamentals, prudent risk management and digital-first growth agenda.”
💰 LIC Among Top Domestic Participants
The Life Insurance Corporation (LIC) of India acquired 6.1 crore shares for ₹5,000 crore, increasing its stake in SBI from 9.21% to 9.49%. The insurer confirmed that the shares will be credited and listed between July 23–24, 2025.
📈 Capital Boost to Support Future Growth
SBI stated that proceeds from the QIP will bolster its Common Equity Tier-I (CET-1) capital, which is projected to rise from 10.81% to 11.50%. The bank plans to deploy this capital to support calibrated loan growth across the retail, MSME, and corporate segments.
🧾 QIP Part of ₹45,000 Cr FY26 Fundraising Drive
This equity issue marks SBI’s first QIP since FY18, when it had raised ₹18,000 crore. The bank is aiming to raise up to ₹45,000 crore in FY26 through a mix of equity and debt. In tandem with the QIP, SBI’s board has also approved raising ₹20,000 crore via Basel III-compliant AT1 and Tier-II bonds in tranches.
💹 Market Response & Share Performance
The QIP launched on July 16, 2025, with a floor price of ₹811.05, and shares closed 0.2% higher at ₹824.60 on the NSE following the announcement.
📉 Capital Adequacy & Peer Comparison
As of March 2025, SBI’s Capital Adequacy Ratio stood at 14.25%, slightly down from 14.28% a year ago, and below that of peers like HDFC Bank (19.6%) and Bank of Baroda (17.2%)—highlighting the need for proactive capital infusion.
Moody’s noted that SBI’s CET1 ratio improved from 10.3% in March 2022 to 11.1% in March 2025, with expectations of further strengthening due to internal accruals and stake sales, including YES Bank shares.
📌 Moody’s Upgrades SBI’s Credit Profile
Moody’s upgraded SBI’s Baseline Credit Assessment (BCA) from ‘ba1’ to ‘baa3’, citing its strong retail base, liquidity profile, and improved internal capital generation. The agency also forecasts 12% loan growth for SBI in FY26, in line with industry trends.
