State Bank of India (SBI) has announced its plan to raise up to ₹25,000 crore in equity capital during the financial year 2025-26. The fundraise will be conducted in one or more tranches through Qualified Institutions Placement (QIP), Follow-on Public Offer (FPO), or any other permitted route or combination thereof.

According to the bank’s filing, the raised capital—including share premium—will support SBI’s future growth plans and capital adequacy. The move is subject to receipt of requisite regulatory approvals and will be carried out under terms deemed appropriate by the Board, in accordance with SEBI guidelines and other applicable regulations.

This equity infusion is expected to help SBI strengthen its balance sheet, support credit growth, and meet the capital needs of expanding lending activity, especially in priority sectors.

Earlier State Bank of India (SBI) reported a 10% year-on-year (YoY) decline in standalone net profit to Rs 18,642.59 crore for the quarter ended March 31, 2025, compared to Rs 20,698.35 crore in Q4FY24. The drop was primarily due to higher provisioning during the quarter.

Net Interest Income (NII) rose slightly by 2.6% YoY to Rs 42,775 crore in Q4FY25, up from Rs 41,655 crore in the same period last year. Operating profit stood at Rs 31,286 crore versus Rs 28,747 crore in the year-ago quarter. However, provisions surged to Rs 6,441 crore, significantly higher than Rs 1,609 crore last year, including Rs 3,964 crore for NPAs.

Asset quality improved marginally. Gross NPA ratio declined to 1.82% from 2.24%, while Net NPA fell to 0.47% from 0.57% YoY.

Dividend announcement

Alongside its Q4 results, the Central Board of the bank declared a dividend of Rs 15.90 per equity share (1590%) for the financial year ended March 31, 2025. The record date for determining eligible shareholders is May 16, 2025, and the dividend payment will be made on May 30, 2025.