SBI to launch record-breaking share sale of $2.9 billion

State Bank of India (SBI), India’s largest lender by assets, is preparing to raise up to ₹25,000 crore ($2.9 billion) through a share sale to institutional investors, a move that could make it the largest such deal in the country’s history. According to media reports based on information from sources familiar with the matter, the Qualified Institutional Placement (QIP) could launch as early as next week, pending final approvals. If successful, this will surpass the ₹22,560 crore ($2.7 billion) share sale by Coal India Ltd. in 2015, which currently holds the record for the largest QIP in the country.

Strengthening the balance sheet and loan growth

The funds raised will be used to bolster SBI’s balance sheet, support its loan growth, and fulfil regulatory capital requirements. This marks the first time since 2017 that the state-owned lender, majority-controlled by the Indian government, has tapped the equity market for funds. The decision to pursue a QIP was approved by the bank’s board in May.

The share sale comes at a crucial time as SBI continues to expand its operations amid a competitive banking landscape and ongoing economic challenges. As part of the process, the bank has appointed six investment banks to manage the transaction, including global players like Citigroup Inc. and HSBC Holdings Plc, along with domestic firms such as ICICI Securities Ltd. and Kotak Investment Banking.

While the plans are still subject to change, the upcoming QIP, if fully subscribed, will significantly enhance SBI’s ability to fund its loan book and meet the increasing demand for credit in India's growing economy. SBI did not immediately respond to queries regarding the timeline or further details of the transaction.