Govt stake to decrease in SBI! SBI may sell Shares worth Rs.25,000 Crore to Big Investors Next Week

The State Bank of India (SBI), the country’s largest bank, may raise up to ₹25,000 crore (approximately $2.9 billion) by selling shares to institutional investors, according to a report. This sale could happen as early as next week, but sources say the final decision is still being worked out and may change depending on market conditions and approvals.

What Does This Mean?

The bank plans to sell its shares through a process called Qualified Institutional Placement (QIP). In this method, shares are offered directly to big investors like mutual funds, insurance companies, foreign investors, and pension funds, rather than to the general public. This fundraising move is part of SBI’s larger plan to strengthen its capital base, support future growth, and meet regulatory requirements. Click here to read about QIP.

Background and Government’s Plan

In May 2025, SBI’s Board of Directors approved the plan to raise funds through share sales. A senior government official also revealed on July 9, 2025, that state-owned banks (including SBI) aim to raise about ₹45,000 crore in total during the current financial year (2025–26) using similar methods like QIPs.

For the government, this is a part of a bigger effort to reduce its stake in public sector banks, raise funds, and improve the banks’ financial strength without relying on public money.

In addition to SBI, the government is also preparing to sell shares in the following banks during this financial year:

• IDBI Bank
• UCO Bank
• Bank of Maharashtra
• Central Bank of India
• Punjab & Sind Bank
• Indian Overseas Bank

The groundwork and planning will take place during FY 2025-26 while the actual stake sales are expected to begin in FY 2026-27.