SBI may launch Rs.25,000 crore QIP Today

Hellobanker Team

23 hours ago

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According to a report by CNBC-Awaaz, the State Bank of India (SBI) is planning to raise around ₹25,000 crore by selling its shares to big investors. This process is called a Qualified Institutional Placement (QIP), and it might begin as early as July 16.

The Life Insurance Corporation of India (LIC) is expected to be one of the major investors in this QIP. LIC might invest about ₹7,000 crore in this deal.

The shares will likely be offered to investors at a price between ₹790 to ₹800 per share.

This fundraising is a part of SBI’s bigger plan. The bank wants to:

Support its loan growth (give more loans to businesses and individuals),
Strengthen its financial position (make its balance sheet stronger), and
Fulfill certain rules and requirements set by regulators.

This is also important because it is the first time since 2017 that SBI (which is mostly owned by the Indian government) is raising money from the equity market.

To handle this big financial deal, SBI has selected six top investment banks to help manage the process. These include:

Citigroup India
HSBC India
ICICI Securities
Kotak Investment Banking
Morgan Stanley
SBI Capital Markets

Click here to understand What is QIP

In May 2025, the Board of Directors of State Bank of India had 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) may 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: