SBI’s Capital Raising Plan - QIP floor price shows optimism

State Bank of India (SBI), the country’s largest lender, has initiated a Qualified Institutional Placement (QIP) to raise ₹25,000 crore at a floor price of ₹811.05 per share, offering a potential 5% discount. The move is part of its broader capital strengthening strategy for FY26 to meet future regulatory requirements. In addition, SBI has approved raising up to ₹20,000 crore through Basel III-compliant Additional Tier 1 and Tier 2 bonds, aimed at enhancing its capital adequacy. The bank aims to achieve a CET1 ratio of 12% and CRAR of 15% by March 2027, up from current levels of 10.81% and 14.25%, respectively. The fundraising is intended to strengthen its balance sheet rather than support immediate growth.