SBI Raises ₹25,000 Crore Via Largest Ever QIP to Boost Loan Growth
State Bank of India (SBI), India’s largest lender, has successfully raised ₹25,000 crore through a Qualified Institutional Placement (QIP), marking the largest QIP ever in the Indian capital markets. The issue was heavily oversubscribed, receiving bids worth between ₹75,000 crore and ₹1.12 lakh crore, nearly 3 to 4 times the target.
The shares were issued at ₹817 per equity share, slightly above the floor price of ₹811.05, valuing the placement just below market prices to attract significant investor interest. Approximately 306 million shares were allotted to institutional investors globally.
Key Highlights of SBI’s QIP
The QIP was launched on July 16, 2025, and closed successfully with robust investor participation from over 120 institutional investors, including marquee foreign players like BlackRock, Nomura, Millennium, and domestic giants including LIC, HDFC Life, and ICICI Prudential.
Foreign investors accounted for 64.3% of the total demand, while long-term institutional investors received 88% of the allocation, highlighting strong confidence in SBI’s fundamentals and India’s growth story.
The Life Insurance Corporation of India (LIC) increased its stake from 9.21% to 9.49% by investing ₹5,000–7,000 crore in the QIP.
This capital raise will strengthen SBI’s Common Equity Tier 1 (CET1) ratio from 10.81% as of March 31, 2025, to around 11.50%, aiding compliance with regulatory requirements and supporting future loan growth.
SBI plans to raise an additional ₹20,000 crore in FY26 through Basel III-compliant bonds (Additional Tier 1 and Tier 2 instruments), as part of its broader ₹45,000 crore capital-raising plan approved in May 2025.
Purpose and Impact
The fresh capital infusion aims to:
Support SBI’s expanding loan book, which has crossed ₹60 trillion in assets.
Improve the bank’s capital adequacy, enabling measured credit growth across retail, MSME, and corporate segments.
Strengthen financial resilience and risk management as the bank navigates an evolving economic environment.
This milestone fundraising demonstrates strong market trust in SBI’s digital-first growth strategy, prudent risk management, and the overall strength and future potential of India’s banking sector.
Frequently Asked Questions ?
What is a Qualified Institutional Placement (QIP)?
QIP is a capital-raising tool allowing listed companies to issue equity shares or convertible securities to qualified institutional buyers, typically to quickly raise funds without lengthy regulatory approvals.
Why did SBI raise ₹25,000 crore through QIP?
To strengthen its capital base, improve regulatory capital ratios, and support accelerated credit growth across various loan segments.
Who were the key investors in SBI’s QIP?
Institutional investors included LIC, BlackRock, Nomura, Millennium, HDFC Life, ICICI Prudential, and other domestic and foreign funds.
How will this fundraise affect SBI’s ownership structure?
There will be a marginal reduction in the government’s ownership stake, which stood at about 57.43%, as shares are allotted to institutional investors.
What are SBI’s future capital-raising plans?
SBI plans to raise an additional ₹20,000 crore during FY26 via Basel III-compliant bond issuances including Additional Tier 1 and Tier 2 bonds.
When were the shares issued and credited?
Shares were allotted at ₹817 per share, and credited on July 23, 2025.
Published on: July 22, 2025
Published by: PAVAN
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