SBI to Launch Massive $2.9 Billion Share Sale Next Week to Fortify Capital Base and Fuel Growth

Image Source: The Economic Times

India’s largest lender, State Bank of India (SBI), is reportedly preparing to raise ₹25,000 crore (approximately $2.9 billion) through a qualified institutional placement (QIP) as early as next week, according to sources cited by Bloomberg. The move is aimed at strengthening SBI’s Common Equity Tier-1 (CET1) capital and supporting its long-term growth strategy amid rising credit demand.

Why It Matters

The fundraising would mark one of the largest equity issuances by an Indian bank in recent years.
SBI’s CET1 ratio stood at 10.42% as of March 2025, and the infusion will help maintain regulatory buffers and fuel loan growth.
The bank has reportedly appointed top global and domestic investment banks to manage the QIP, with many accepting minimal fees due to the prestige of the mandate.

SBI’s Financial Momentum

SBI recently posted a 28% year-on-year jump in net profit, reaching ₹183.31 billion in Q2 FY25.
The bank’s non-interest income surged 41.5%, while gross loans grew nearly 15% year-on-year.
Despite margin compression, SBI remains one of India’s most profitable companies, even surpassing Reliance Industries in certain quarters.

Market Buzz

The share sale is expected to attract strong interest from foreign institutional investors, sovereign wealth funds, and domestic mutual funds, given SBI’s scale, asset quality, and strategic importance in India’s financial ecosystem.

Sources: Bloomberg, Economic Times, Business Times, Hindu BusinessLine