New Delhi: The State Bank of India (SBI), the country’s largest public sector lender, has successfully raised ₹25,000 crore through a Qualified Institutional Placement (QIP) to support its business expansion plans in FY26. The strategic fundraising move is aimed at bolstering the bank’s capital base amid rising credit demand and economic growth.
In a regulatory filing on Monday, SBI announced that its Committee of Directors approved the closure of the QIP issue and the allocation of 30,59,97,552 equity shares at an issue price of ₹817 per share — including a premium of ₹816 and face value of Re 1 per share.
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LIC Increases Stake to 9.49%
In a parallel development, Life Insurance Corporation of India (LIC), India’s largest institutional investor, has increased its stake in SBI from 9.21% to 9.49% by subscribing to the QIP. LIC now holds over 87.58 crore shares of the bank, up from 81.46 crore previously. The shares are scheduled to be credited to LIC’s demat account on July 23, 2025.
Board Approvals for Further Capital Raise
Earlier this year, SBI’s Central Board had approved the plan to raise up to USD 3 billion (approximately ₹25,000 crore) via QIP in FY26, which shareholders later ratified in June. This marks SBI’s first QIP fundraising since FY 2017–18, when it raised ₹15,000 crore.
In addition to the equity raise, the SBI board has also approved raising up to ₹20,000 crore through Additional Tier I and Tier II bonds in FY26 to further strengthen the bank’s capital adequacy.
Solid Financial Performance in FY25
SBI posted a 16% rise in standalone profit for FY 2024–25, reaching ₹70,901 crore, compared to ₹61,077 crore in the previous fiscal year. Reflecting its strong performance, the board has declared a dividend of ₹15.90 per equity share for FY25.
About SBI
State Bank of India (SBI) is the largest public sector bank in India, headquartered in Mumbai. It offers a wide range of banking and financial services, including personal banking, corporate lending, wealth management, and digital banking. With a legacy dating back over 200 years, SBI operates one of the largest branch and ATM networks in India and has a growing international presence. Known for its scale, trust, and government backing, SBI plays a pivotal role in India’s economic and financial ecosystem.
