Did SBI Successfully Raise Rs 25,000 Crore and Boost CET1 Capital to 11.50% Post QIP?
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Synopsis
In a landmark financial move, the State Bank of India has successfully completed a Qualified Institutional Placement, raising Rs 25,000 crore. This capital boost will enhance its CET1 capital to 11.50%, showcasing the bank's robust fundamentals and signaling confidence in the Indian economy.
Key Takeaways
- SBI raised Rs 25,000 crore through QIP.
- CET1 capital rises to 11.50%.
- Oversubscribed 4.5 times, indicating strong demand.
- 64.3% of demand from foreign investors.
- SBI celebrates 70 years of operations.
Mumbai, July 21 (NationPress) The State Bank of India announced on Monday the successful completion of its Qualified Institutional Placement (QIP), securing Rs 25,000 crore in equity shares.
The shares were priced at a premium above the floor price of Rs 811.05 each.
This capital infusion will enhance SBI's CET-1 buffer, which is projected to rise to 11.50% from 10.81% as of March 31, 2025, thereby supporting well-calibrated credit growth across retail, MSME, and corporate sectors, the bank stated.
The offering saw robust demand, being oversubscribed by 4.5 times, which reflects strong investor confidence in SBI’s strategic vision and the outlook for the Indian banking sector.
Foreign investors contributed 64.3% to the overall demand. Notably, renowned long-term investors received 88% of the final allocation, including 24% of the total issue size allocated to foreign long-term investors.
“This significant equity raise signifies a strong vote of confidence in SBI’s solid fundamentals, prudent risk management, and digital-first growth strategy. We appreciate the overwhelming support from both domestic and international investors, which underscores the current resilience and future potential of the Indian economy, said C.S. Setty, Chairman of SBI.
Earlier in May, SBI’s board approved raising equity capital of up to Rs 25,000 crore during FY26, aimed at strengthening SBI’s Common Equity Tier 1 (CET1) capital ratio to enhance the bank's financial health.
SBI also issued a dividend cheque amounting to Rs 8,076.84 crore to the government for the fiscal year 2024-25, with a net profit soaring to Rs 70,901 crore.
As the bank celebrates its 70th anniversary, it boasts a balance sheet that has escalated to Rs 66 lakh crore and a customer base exceeding 52 crore.
Point of View
SBI's successful QIP indicates a positive trend in investor confidence and reflects the resilience of the Indian banking sector amidst global economic uncertainties. This move not only strengthens SBI's capital position but also underscores the bank's commitment to supporting growth in key sectors.
NationPress
21/07/2025
Frequently Asked Questions
What is the significance of SBI raising Rs 25,000 crore?
This capital raise enhances SBI's CET1 capital ratio, strengthens its financial position, and allows for improved credit growth across various sectors.
How does the oversubscription of the QIP affect investor confidence?
The oversubscription indicates strong investor confidence in SBI's strategy and the overall outlook for the Indian banking sector.
Who are the main investors in this QIP?
Foreign investors accounted for 64.3% of the demand, with significant allocations going to long-term investors.
What was SBI's net profit for the financial year 2024-25?
SBI reported a net profit of Rs 70,901 crore for the financial year 2024-25.
What milestone is SBI celebrating this year?
SBI is celebrating its 70th year of operations, marking a significant achievement in its history.
