State Bank of India shares jump amid fund raising reports via QIP; check details here

This is the first share sale for the State Bank of India (SBI) in eight years. The bank had raised ₹15,000 crore by selling 522 million shares through the QIP route in June 2017.

The QIP was approved by the bank’s board on May 3. If the bank raises ₹25,000 crore, it will be the largest share sale through a QIP in India.

People familiar with the matter have also told various news platforms that the Life Insurance Corporation of India (LIC) will likely be the biggest anchor investor with a potential bid of over 500 crore.

Previously it was reported that the state-run lender had picked Kotak Mahindra Capital Company, ICICI Securities, HSBC Securities and Capital Markets, Citigroup Global Markets, Morgan Stanley India, and SBI Capital Markets to manage the fundraising.

At the time of writing the piece, shares of SBI were trading at ₹826.95 apiece, climbing 1.29% on the National Stock Exchange.

In June, SBI had paid a dividend of ₹8,076.84 crore to the government for the financial year 2024-25.

The dividend check was presented to Finance Minister Nirmala Sitharaman by SBI Chairman C. S. Setty in the presence of Financial Services Secretary M. Nagaraju and Finance Secretary Ajay Seth.

SBI declared a dividend of ₹15.90 per share for the financial year 2024-25, higher than the ₹13.70 per equity share distributed for the previous year. SBI had paid a dividend of ₹6,959.29 crore to the government last year.

For the March quarter, the Mumbai-headquartered bank had reported a net profit of ₹18,642.59 crore in the January-March quarter (Q4 FY25), marking a decline of 10% from ₹20,698.35 crore logged in the corresponding quarter of the previous fiscal year on the back of higher provisioning for non-performing assets.

Its provisions for non-performing assets jumped 20% annually to ₹3,964.23 crore as against ₹3,293.94 crore registered in the year-ago period. Sequentially, provisions jumped 72%.

SBI's net interest income, or the difference between interest earned and interest expended, came in at ₹42,774.63 crore as against ₹41,655.19 crore in the year-ago period. The whole bank's net interest margin (NIM) for Q4 FY25 stood at 3%.