State Bank of India (SBI), the country’s largest public sector lender, has successfully raised Rs 25,000 crore through a Qualified Institutional Placement (QIP), making it the largest equity fundraising via QIP in Indian capital markets. The bank’s board approved the issue and allotment of 30.6 crore equity shares at an issue price of Rs 817 per share, closing the QIP late Monday, July 21.
The QIP saw 4.5 times subscription, with 64.3 per cent of bids coming from foreign institutional investors (FIIs). Around 88 per cent of the final allocation went to marquee long-term investors, including 24 per cent to foreign long-only funds, according to a statement by SBI.
Among major participants, Life Insurance Corporation (LIC) of India invested Rs 5,000 crore, acquiring 6.1 crore shares. Post this transaction, LIC’s shareholding in SBI will increase to 9.49 per cent from 9.21 per cent. LIC expects the shares to be allotted by July 23 and listed by July 24.
Capital to Support Growth, Boost CET-1 Buffer
SBI said the funds will be used to strengthen its Common Equity Tier 1 (CET-1) capital, which will improve to 11.50 per cent, up from 10.81 per cent as of March 31, 2025. The bank aims to support calibrated credit growth across retail, MSME, and corporate sectors.
SBI Chairman C.S. Setty called the QIP “a vote of confidence in SBI’s strong fundamentals, digital-first strategy, and prudent risk management.”
This QIP marks SBI’s first equity raise since FY18, when it raised Rs 18,000 crore. SBI plans to raise Rs 45,000 crore in FY26 through both equity and debt instruments, including Rs 20,000 crore via Basel III-compliant AT1 and Tier-II bonds.
SBI’s Strong Bond Issuance & YES Bank Stake Sale
In FY25, SBI emerged as the largest issuer of bank bonds, raising Rs 27,500 crore—Rs 5,000 crore through AT1 bonds and Rs 22,500 crore via Tier-II bonds. The bank also plans to raise Rs 8,889 crore from selling a 13.19 per cent stake in YES Bank to Japan-based Sumitomo Mitsui Banking Corp. (SMBC).
Moody’s Upgrades SBI Outlook
Global ratings agency Moody’s upgraded SBI’s Baseline Credit Assessment (BCA) to ‘baa3’ with a stable outlook, citing improved internal capital generation, stake sales, and external capital raises as key factors. Moody’s pegged SBI’s credit growth at 12 per cent for FY26, in line with the industry average.
SBI shares are trading at 0.74 per cent down as of 14:14 pm on Tuesday.
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