SBI to raise ₹25,000 Cr via QIP/FPO in FY26 amid 10% dip in Q4 profit

State Bank of India (SBI) announced plans to raise up to ₹25,000 crore in FY2025-26 through a Qualified Institutional Placement (QIP) or a Follow-on Public Offer (FPO). The capital raise is aimed at strengthening its balance sheet and fueling future growth.

Despite the ambitious fundraising plan, SBI reported a 10% year-on-year decline in Q4FY25 net profit, posting ₹18,642.59 crore compared to ₹20,698.35 crore in Q4FY24.

However, the bank showed improvements in key operational metrics:

Net Interest Income (NII) rose 2.7% YoY to ₹42,774.55 crore.

Gross NPA improved to 1.82%, the best in 14 years, from 2.07% in the previous quarter.

Net NPA dropped to 0.47% from 0.53% QoQ.

Slippages slightly rose to ₹4,319 crore from ₹4,146 crore in Q3FY25.

SBI’s total advances grew by 12.03% YoY to ₹42.21 trillion, led by:

16.9% growth in SME loans

14.5% growth in home loans

11.4% rise in domestic retail personal advances to ₹15.06 trillion

On the earnings call, Chairman CS Setty highlighted global uncertainties from trade and tariff tensions but remained optimistic about the domestic farm sector due to an above-normal monsoon forecast.

He noted a shift in deposit trends with term deposits outpacing savings, and said SBI can support ₹8 lakh crore in credit growth without needing additional capital. The bank remains focused on maintaining industry-leading asset quality and targets a 15% return on equity (RoE) over economic cycles.

The board also approved a dividend of ₹15.90 per share for FY25, up from ₹13.70 in the previous year.