SBI Share Price in Focus: Plan to Raise ₹25,000 Crore Via QIP/FPO in FY26

On May 5, 2025, SBI share price will be in focus as the public sector bank announced its plans to raise up to ₹25,000 crore in FY26 via either a Qualified Institutions Placement (QIP) or a Follow-on Public Offer (FPO). The capital infusion is aimed at strengthening the bank’s balance sheet and fueling its long-term growth ambitions.

SBI Q4FY25 Earnings Highlights

In its Q4FY25 results, SBI reported a 10% year-on-year decline in net profit, which stood at ₹18,642.59 crore compared to ₹20,698.35 crore in the same quarter last year. However, the bank’s core earnings remained resilient, with net interest income (NII) rising 2.7% YoY to ₹42,774.55 crore.

A key highlight was the bank’s asset quality, which reached a 14-year high. Gross non-performing assets (GNPA) improved to 1.82%, down from 2.07% in the previous quarter, while net NPA fell to 0.47% from 0.53% QoQ. Slippages rose slightly to ₹4,319 crore from ₹4,146 crore in Q3.

As of March 2025, SBI’s total advances climbed to ₹42.21 trillion, marking a 12.03% year-on-year growth. This was primarily driven by a 16.9% increase in SME loans and a 14.5% uptick in home loans. Domestic retail personal advances also saw robust growth, rising 11.4% YoY to ₹15.06 trillion.

Management Take on Q4FY25 Overview

Speaking on the bank’s earnings call, Chairman CS Setty cautioned about external headwinds. “Escalation of trade and tariff tensions has heightened concerns around global economic growth. While this could dampen domestic prospects, the outlook for the farm sector remains strong due to forecasts of an above-normal monsoon,” he said.

Setty also highlighted that term deposits are growing faster than savings deposits and that overall credit growth remains healthy, though it is showing signs of moderation. He reaffirmed SBI’s strategic goal of maintaining a 15% return on equity (RoE) across cycles, emphasising the bank’s continued industry-leading asset quality.

Also Read: India Post and SBI Mutual Fund Join Hands for Easier Mutual Fund KYC Across India

According to Setty, SBI has the capacity to support up to ₹8 lakh crore in additional credit without requiring fresh capital. Reflecting confidence in its performance, the bank’s board has declared a dividend of ₹15.90 per share for the financial year ended March 31, 2025, up from ₹13.70 in the previous year.

Conclusion

The planned ₹25,000 crore capital raise signals the bank’s intent to proactively position itself for future expansion while maintaining financial resilience.

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