File Photo of State Bank of India (SBI) branch.
Credit: Reuters Photo
New Delhi, Jul 21 (PTI) State Bank of India (SBI) on Monday said it has raised Rs 25,000 crore through Qualified Institutional Placement (QIP) to fund business growth.
The committee of directors at its meeting held on Monday approved the closure of the issue pursuant to the receipt of application forms and the funds in the escrow account from the eligible Qualified Institutional Buyers (QIBs) in accordance with the terms of the issue, SBI said in a regulatory filing.
The meeting also approved the allocation of 30,59,97,552 equity shares at an issue price of Rs 817 per share of face value of Re 1 each, including a premium of Rs 816 apiece, it said.
The panel also finalised the allocation note to be sent to the eligible QIBs, intimating them of allocation of equity shares pursuant to the issue.
In a separate filing, Life Insurance Corporation of India (LIC) said it has increased shareholding in equity shares of SBI from 81,46,59,869 to 87,58,59,380, that is, 9.21 per cent to 9.49 per cent of the paid-up capital of the bank.
This was done through the QIP, and the share would be credited on July 23, 2025.
The fundraising of up to USD 3 billion (about Rs 25,000 crore) through private placement in FY26 was approved by the SBI's central board in May. Thereafter, the shareholders had cleared the same in June.
SBI had last raised Rs 15,000 crore in 2017-18 through the QIP route.
Besides, the lender announced that it received board approval to raise up to Rs 20,000 crore through additional tier 1 and tier 2 bonds in FY26.
For the entire 2024-25 financial year, SBI reported a 16 per cent increase in standalone profit to Rs 70,901 crore against Rs 61,077 crore in the previous year.
The bank's board has declared a dividend of Rs 15.90 per equity share for FY25.