SBI Launches India’s Largest QIP in 8 Years: Plans to Raise Rs 25,000 Crore via Six Banks

State Bank of India (SBI) is gearing up to launch a ₹25,000 crore Qualified Institutional Placement (QIP)—its first share sale since June 2017 and potentially the largest QIP in India—by appointing six merchant banks.

Objective of the Fundraising

The capital infusion will strengthen SBI’s Common Equity Tier‑1 (CET‑1) ratio, which stood at about 11% in March 2025—among the lowest in the public sector banking space.

Enhanced CET‑1 cushions the bank against risk and supports aggressive growth and lending plans.

Bankers Appointed

• SBI has tapped Kotak Mahindra, Citigroup, HSBC, Morgan Stanley, ICICI Securities, plus its own SBI Capital Markets arm to manage the QIP.
• These banks reportedly agreed to a nominal fee of Rs 1, viewing the mandate as a prestige win instead of profit.

This marks SBI’s second QIP, following six‑year hiatus since the Rs 15,000 crore placement in June 2017. While the board approved the QIP on May 3, SBI is expected to launch it in the second quarter (Aug–Sept), subject to market conditions.

Despite the announcement, SBI shares traded largely flat—hovering around Rs 800 on Thursday, mirroring broader index trends.

Strategic Implications

Strengthened equity means greater lending capacity, helping SBI maintain a competitive edge among PSU peers.

QIP offers speedier execution than rights issues while tapping into deep institutional demand—LIC, SBI’s significant stakeholder, may participate again.

SBI’s Rs 25,000 crore QIP isn’t just a financial milestone—it’s a strategic pivot to fortify its capital, accelerate lending, and navigate an evolving banking landscape. With top merchant banks on board and a bold pricing strategy, this could signal fresh momentum for SBI’s stock and growth trajectory.