SBI Readies ₹25,000 Cr QIP for Next Week
India’s biggest public sector bank, State Bank of India (SBI), is set to kick off a major share sale worth approximately ₹25,000 crore (~US $2.9 billion) through a Qualified Institutional Placement (QIP), potentially as early as next week. The bank’s board has already given the green light, and SBI is now engaging with institutional investors for what may be the largest QIP in the country’s banking sector.
SBI QIP
This marks SBI’s first large-scale equity raise since 2017. The primary goals are to strengthen its Common Equity Tier‑1 (CET‑1) capital cushion and to fund continued loan growth across retail and corporate lending segments.
Capital Raising Strategy
SBI’s ₹25,000 crore QIP is part of a collective push among state-owned banks to mobilize nearly ₹45,000 crore through QIPs in the 2025–26 fiscal year. Other participating banks include IDBI, UCO, PNB, Central Bank of India, Bank of Maharashtra, and Punjab & Sind Bank.
Market & Institutional Setup
SBI has engaged six leading merchant banks—Citigroup, HSBC, ICICI Securities, Kotak, Morgan Stanley, and SBI Capital Markets—to handle placement logistics and ensure broad institutional participation.
Implications & Outlook
- Capital Adequacy: This infusion will help SBI maintain regulatory capital ratios amid rapid balance sheet expansion.
- Loan Growth: The fresh equity supports ambitious credit growth amid rising demand across sectors.
- Pricing & Timeline: Final pricing and offer size will hinge on investor feedback and market conditions, though the QIP is expected soon.
