SBI to Raise ₹25,000 Crore Through QIP to Strengthen Capital Base

State Bank of India (SBI), the country’s largest public sector lender, is set to launch a ₹25,000 crore qualified institutional placement (QIP) on Wednesday, July 16. This marks the bank’s first major equity fundraising effort since 2017.

Why Is SBI Raising Funds?

SBI aims to use the proceeds from the QIP to strengthen its capital base, not to fund growth. The bank is targeting a Common Equity Tier 1 (CET1) ratio of 12% and a Capital to Risk-weighted Assets Ratio (CRAR) of 15% by March 2027. As of March 2025, SBI’s CET1 ratio stood at 10.81%, and its CRAR was 14.25%.

By improving these key financial metrics, SBI aims to ensure financial stability and be better prepared for future regulatory requirements and economic conditions.

Who Will Likely Invest?

One of the key investors expected to participate is Life Insurance Corporation of India (LIC), which may invest more than ₹5,000 crore in the QIP. Domestic mutual funds have also shown strong interest in the offering.

SBI is likely to offer the shares at a slight discount to the current market price to attract more institutional investors.

SBI Share Price Reaction

The QIP plan has generated positive sentiment in the market. Shares of SBI rose 0.31% to ₹818.95 following the news. So far in 2025, the stock has gained 3% on a year-to-date basis.

Read more: Kalyan Jewellers Share Price Rises — But How Much Debt Does the Company Have?

Conclusion

SBI’s ₹25,000 crore QIP marks a significant step toward strengthening its capital structure. With strong interest from institutional investors like LIC and mutual funds, the bank seems well-positioned to meet its capital goals. This move also sends a positive signal to the market about SBI’s financial discipline and future preparedness.

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