New Delhi [Economy India] : India’s largest public sector bank, the State Bank of India (SBI) has announced a significant capital-raising plan worth Rs 45,000 crore for the current financial year (FY2025-26). The bank will mobilize funds through a mix of Qualified Institutional Placement (QIP) and domestic bond issuances, aiming to strengthen its balance sheet, meet regulatory capital requirements, and fund aggressive credit growth.
According to an official stock exchange filing on Wednesday, SBI has opened its QIP issue worth Rs 25,000 crore, offering shares to qualified institutional investors. This move is part of its broader strategy to augment Tier-1 capital in compliance with Basel III norms and to support lending expansion in retail, MSME, and infrastructure sectors.
In addition, SBI will issue bonds worth up to Rs 20,000 crore to domestic investors during FY26. These will likely include infrastructure bonds, Tier-II capital bonds, and other long-term debt instruments aimed at deepening its funding pool.
“This capital raise is crucial for SBI as it prepares to capture emerging lending opportunities in a growing Indian economy while maintaining robust asset quality and regulatory capital buffers,” a banking analyst said.
Key Objectives of SBI’s Rs 45,000 Cr Capital Raising Plan:
- Support credit growth across retail, corporate, and MSME sectors
- Maintain healthy capital adequacy ratios under Basel III norms
- Enhance lending capabilities in infrastructure and green finance
- Diversify funding sources through equity and debt instruments
This marks one of the largest capital-raising moves by an Indian bank this fiscal and comes at a time when credit demand is robust and interest rate volatility remains a concern.
(Economy India)
Source (PTI)
