SBI shares fall 3% ahead of lender's plans to raise funds via various modes

Shares of State Bank of India (SBI) declined over 3 percent on Wednesday amid reports that the country’s largest public sector lender is considering various fundraising options, including a Follow-on Public Offer (FPO), rights issue, or Qualified Institutional Placement (QIP), during the current financial year ending March 2026. The final decision on the proposed capital raise is expected on May 3, when either the government or the Reserve Bank of India (RBI) is likely to give its nod. The lender is also scheduled to announce its quarterly financial results on the same day.

In an exchange filing, SBI said the board will consider fundraise through equity. The bank informed the exchange after the market closing hours on April 29.

SBI is expected to report a weak performance for the March quarter (Q4FY25) because of lower treasury income and a decline in margins.

According to Moneycontrol's poll, SBI’s net interest income (NII) is likely to grow modestly by 5.3 percent year-on-year (YoY) to Rs 43,872 crore in Q4FY25, up from Rs 41,655 crore in the same quarter last year. However, the bank’s profit is expected to fall sharply by 13 percent YoY to Rs 17,971 crore in Q4FY25, compared to Rs 20,698 crore in Q4FY24.