SBI engages 6 banks for ₹25,000 crore QIP
State Bank of India (SBI) is set to raise up to ₹25,000 crore through a Qualified Institutional Placement (QIP)—its first big share sale in eight years.
The goal? To boost its core capital levels, which are currently on the lower side among public sector banks.
If all goes as planned, this could become the biggest institutional share sale India's ever seen.
SBI has hired 6 banks to manage the QIP
SBI has teamed up with six major banks—including Kotak Mahindra Capital and ICICI Securities—to handle the QIP.
They're targeting big institutional investors for a quick capital infusion instead of going for a public or rights issue.
LIC, already holding about 9% in SBI, is likely to pick up a good chunk of these new shares.
SBI is a key government asset
SBI isn't just any bank—it handles around 20% of all loans in India and is a key government asset.
Recently, it posted strong numbers: 19% return on equity and 12% loan growth.
Plus, with extra cash coming in from selling stakes in Yes Bank and NSE this year, SBI seems focused on staying ahead in the game.