SBI, other public sector banks to raise $5.25 bn through QIPs in FY26

State-run banks, led by SBI, plan to raise ₹450 billion via QIP in FY26, with the government also targeting stake sales in multiple PSU banks by October

Public sector banks are set to raise around ₹45,000 crore (approximately $5.25 billion) through qualified institutional placement (QIP) of shares during the 2025-26 financial year, a government source told Reuters on Wednesday.  The State Bank of India (SBI), the country's largest lender by assets, is expected to launch its QIP soon. "The bank had in May approved raising ₹25,000 crore in equity capital this year," the source said.  The central government also aims to finalise its stake sale in IDBI Bank by October, the source added. In addition, plans are in place to offload shares in several other state-run banks, including UCO Bank, Bank of Maharashtra, Central Bank of India, Punjab & Sind Bank, and Indian Overseas Bank during the financial year. 

Part of wider disinvestment strategy

As part of its broader asset monetisation and disinvestment programme, Prime Minister Narendra Modi's administration had announced in the Union Budget that it targets raising ₹47,000 crore through stake sales and asset monetisation initiatives.  The finance ministry and SBI did not immediately respond to Reuters’ requests for comment made outside regular business hours.