Capital Calling—India’s State Banks Launch ₹5.25B QIP Offensive

India’s public sector banks are gearing up to raise ₹45,000 crore ($5.25 billion) through Qualified Institutional Placements (QIPs) in the 2025–26 financial year, marking a strategic push to strengthen capital buffers and support infrastructure lending.

Key highlights:

State Bank of India (SBI), the country’s largest lender, will spearhead the fundraising with a ₹25,000 crore QIP, already approved in May
The government plans to complete its stake sale in IDBI Bank by October
Additional disinvestment targets include UCO Bank, Bank of Maharashtra, Central Bank of India, Punjab & Sind Bank, and Indian Overseas Bank
The QIP initiative aligns with the Union Budget’s broader goal of raising ₹47,000 crore through stake sales and asset monetisation

Strategic context:

The capital infusion will help banks meet Basel III norms, expand credit to priority sectors, and absorb potential stress from rising interest rates
SBI’s QIP is expected to attract strong institutional interest, given its stable asset quality and leadership in infrastructure financing
The move also signals the government’s intent to reduce its holding in PSU banks and improve operational autonomy

Market watchers view this as a pivotal moment for India’s banking sector, balancing fiscal consolidation with growthoriented capital deployment.

Sources: The Hindu BusinessLine, Business Standard, Reuters, Yahoo Finance, PTI