State Bank of India Ltd. (SBI), the country’s largest lender, is set to launch a ₹25,000 crore qualified institutional placement (QIP) on Wednesday, July 16. This marks the lender’s first equity fundraising since 2017.SBI is expected to offer a slight discount to the current market price for the issue.
Life Insurance Corporation of India (LIC) is likely to be a key participant, with a potential bid of over ₹5,000 crore.
Strong interest is also being seen from domestic mutual funds.
The capital raise is aimed at strengthening the bank’s capital base, rather than funding growth.SBI is targeting a Common Equity Tier 1 (CET1) ratio of 12% and a Capital to Risk-weighted Assets Ratio (CRAR) of 15% by March 2027. The proposed fundraising is expected to support these goals.
Life Insurance Corporation of India (LIC) is likely to be a key participant, with a potential bid of over ₹5,000 crore.
Strong interest is also being seen from domestic mutual funds.
The capital raise is aimed at strengthening the bank’s capital base, rather than funding growth.SBI is targeting a Common Equity Tier 1 (CET1) ratio of 12% and a Capital to Risk-weighted Assets Ratio (CRAR) of 15% by March 2027. The proposed fundraising is expected to support these goals.
As of March 2025, SBI’s CET1 ratio stood at 10.81%, while its CRAR was at 14.25%.
CNBC-TV18 has reached out to both SBI and LIC for comments; their responses are awaited.
Out of the 50 analysts that have coverage on SBI, 40 of them have a ‘Buy’ rating on the stock, while nine of them have a ‘Hold’ rating and one has a ‘Sell’ rating.
Shares of State Bank of India are currently trading 0.31% higher at ₹818.95. The stock has risen 3% on a year-to-date basis.
First Published: Jul 16, 2025 10:25 AM IS
