SBI Raises Rs 25,000 Crore via QIP to Strengthen Capital, Fuel Growth
- SBI raised Rs 25,000 crore through QIP to enhance its CET-1 ratio to 11.50%.
- Issue oversubscribed 4.5x; 64.3% demand from foreign investors.
- FY25 net profit at Rs 70,901 crore; customer base crosses 52 crore.
The State Bank of India (SBI), the country’s largest public sector lender, announced the successful completion of its Qualified Institutional Placement (QIP), raising Rs 25,000 crore. The equity shares were priced at a premium to the floor price of Rs 811.05 per share.
The proceeds from the QIP will augment SBI’s Common Equity Tier 1 (CET-1) capital buffer, expected to improve from 10.81% as on March 31, 2025, to 11.50%. This capital infusion is set to support calibrated credit growth across retail, MSME, and corporate segments, the bank said in an official statement.
The issue received strong investor response, with the book oversubscribed 4.5 times. Foreign investors contributed 64.3% of the total demand, while 88% of the final allocation went to marquee long-term investors 24% of whom were foreign long-term funds.
“This landmark equity raise is a vote of confidence in SBI’s solid fundamentals, prudent risk management and digital-first growth agenda. We are grateful to both domestic and international investors for their overwhelming support, which also speaks volumes about the current strength and future potential of the Indian economy”, said SBI Chairman C.S. Setty.
The QIP follows a board approval in May 2024, allowing SBI to raise up to Rs 25,000 crore during FY26 to strengthen its CET-1 capital.
Meanwhile, SBI continues to report robust financial performance. For FY25, the bank posted a record net profit of Rs 70,901 crore and handed over a dividend cheque of Rs 8,076.84 crore to the government. Marking its 70th year of operations, the bank boasts a soaring balance sheet of Rs 66 lakh crore and a customer base exceeding 52 crore.
