Banking on Greatness: Inside SBI’s Rs 25,000 Crore Sprint to Elite Global Status

State Bank of India (SBI) has unveiled an ambitious roadmap to join the ranks of the world’s top 10 banks by market capitalization within five years. This bold aspiration is backed by a record-breaking Qualified Institutional Placement (QIP) and a surge in investor confidence.

Key highlights from the announcement:

- SBI raised Rs 25,000 crore through India’s largest-ever equity issuance via QIP

- The issue was oversubscribed 4.5 times, with foreign investors contributing 64.3 percent of total demand

- Marquee long-term investors received 88 percent of the final allocation, including 24 percent from foreign institutions

- SBI issued 306 million equity shares at Rs 817 each, including a premium of Rs 816 per share

- The capital infusion will boost SBI’s Common Equity Tier-1 (CET-1) ratio to 11.50 percent from 10.81 percent as of March 2025

- Funds will support calibrated credit growth across retail, MSME, and corporate segments

Market momentum:

- SBI’s market cap has climbed steadily from Rs 3.25 trillion in FY21 to Rs 7.53 trillion in July 2025

- The bank’s price-to-book ratio now stands at 1.7x, reflecting improved investor sentiment

- SBI’s board has also approved raising up to Rs 20,000 crore via AT1 and Tier-II bonds

Chairman CS Setty emphasized consistency in performance, productivity gains, and operational resilience as the pillars of SBI’s global ambition.

Sources: Business Standard, Moneycontrol, NSE, SBI official filing

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