SBI Set to Unleash India’s Biggest QIP: ₹25,000 Crore Fundraise on the Cards

State Bank of India (SBI), the country’s largest lender, is poised to launch a landmark Qualified Institutional Placement (QIP) worth up to ₹25,000 crore, according to top government sources. This will be SBI’s first equity fundraising in eight years and, if fully executed, the largest QIP-based share sale in Indian history.

 

Key Highlights

Board Approval & Timeline: SBI’s board approved the QIP plan on May 3, 2025. The launch is expected within the next two months, with timing dependent on market conditions.

 

Purpose: The capital raise aims to strengthen SBI’s Common Equity Tier 1 (CET1) ratio, targeting 12% by March 2027 (currently at 10.81% as of March 2025), and bolster its overall capital base, not immediate growth.

 

Lead Managers: Six global and domestic investment banks—HSBC, Citi, Kotak, Morgan Stanley, ICICI Securities, and SBI Capital Markets—have been appointed as lead managers, charging a token fee of ₹1 for this prestigious mandate.

 

Market Impact: The QIP could reduce the government’s stake from 57% to around 55.5%. LIC, holding 9.38%, is expected to be a major participant.

 

Sector-Wide Move: Indian state-owned banks collectively plan to raise ₹45,000 crore ($5.25 billion) through QIPs in FY26, with SBI leading the charge.

 

Financial Performance: SBI reported a record net profit of ₹70,901 crore in FY25, with improving asset quality and strong investor confidence.

 

Source: HDFC Sky, Reuters, Times of India, CNBC-TV18