State Bank of India board on July 16 approved raising up to Rs 20,000 crore through bonds in FY26.
"The Central Board of the Bank in its meeting held today i.e. 16.07.2025 accorded approval for raising funds in INR by issue of Basel III compliant Additional Tier 1 and Tier 2 Bonds, up to an amount of Rs 20,000 crore to domestic investors during FY26, subject to GOI approval wherever required," said the PSU lender in a stock exchange filing.
At 1:40 pm on July 16, SBI shares were trading 1.8% higher at Rs 830.6 apiece.
Meanwhile, CNBC-Awaaz reported citing sources that State Bank of India is likely to launch Rs 25,000-crore QIP as early as July 16.
Life Insurance Corporation of India is likely to be anchor investor with Rs 7,000-crore bid, the channel reported.
The pricing of the Qualified Institutional Placement is likely to be Rs 790-800 per share.
The likely QIP is part of SBI’s broader plans to support loan growth, strengthen its balance sheet and meet regulatory requirements. It’s also the first time since 2017 that the lender, majority owned by the government, tapped the equity market.
SBI has shortlisted six investment banks to manage the transaction, including the Indian arms of Citigroup Inc. and HSBC Holdings Plc, as well as ICICI Securities Ltd., Kotak Investment Banking, Morgan Stanley, and SBI Capital Markets Ltd., Bloomberg News reported earlier.
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