State Bank of India (SBI) eyes spot among world's top 10 banks by market value in five years
- IBEF
- July 24, 2025
The State Bank of India (SBI), the country’s largest lender, has set an ambitious target to become one of the top 10 global banks by market capitalisation within the next five years. Speaking after the successful listing of shares issued under its Qualified Institutional Placement (QIP), Chairman of the State Bank of India Mr. Challa Sreenivasulu Setty highlighted the bank’s focus on consistent financial performance, market share growth in deposits and advances, and improving customer satisfaction as key drivers towards this goal. SBI’s market capitalisation has shown steady growth, rising from Rs. 3,25,000 crore (US$ 37.6 billion) at the end of March 2021 to Rs. 7,13,000 crore (US$ 82.5 billion) as of March 2025, with the current trading valuation at Rs. 7,53,000 crore (US$ 87.14 billion).
The recent QIP issue was oversubscribed by 4.5 times, reflecting strong investor confidence, with foreign investors accounting for 64.3% of total demand. The bank raised Rs. 25,000 crore (US$ 2.89 billion) through the sale of 306 million equity shares at Rs. 817 (US$ 9.46) per share, bolstering its Common Equity tier-I (CET-1) capital to approximately 11.50% from 10.81% as of March 2025. This enhanced capital buffer will support calibrated credit growth across retail, Micro, Small and Medium Enterprises (MSME), and corporate segments. On the debt front, SBI plans to raise to Rs. 20,000 crore (US$ 2.31 billion) via additional tier-I and tier-II bonds, primarily to replace maturing papers and raise new funds. Meanwhile, the bank has reduced short-term deposit rates by up to 60 basis points in FY25 and cut savings account rates to 2.5%. Lending rates, including the Marginal Cost of Funds-based Lending Rate (MCLR), have also been adjusted downwards in line with easing interest rate trends.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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