Top Searches
Advertisement

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


Updated: July 10, 2025 11:44

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

Advertisement

STORIES YOU MAY LIKE

Advertisement

Advertisement