Public Sector Banks to Raise ₹45,000 Crore via Share Sale in FY26

In a major financial move, Indian public sector banks will raise about ₹45,000 crore through Qualified Institutional Placement (QIP) of shares in the financial year 2025–26. This was revealed by a government source on Wednesday, July 9, 2025. The move is part of the government’s larger plan to raise money through stake sales and boost capital in banks.

SBI to Start Share Sale, Other Banks to Follow

The State Bank of India (SBI), the country’s biggest bank, will soon launch its QIP. In May 2025, SBI had already approved a plan to raise ₹25,000 crore in equity capital. This QIP is a way for banks to get money from large institutional investors by offering them shares.

Other state-run banks such as UCO Bank, Bank of Maharashtra, Central Bank of India, Punjab & Sind Bank, and Indian Overseas Bank will also sell shares in the current financial year. These banks are expected to use the money raised to improve their financial strength and support more lending.

Government’s Broader Plan for Disinvestment

The Modi government plans to complete the sale of its stake in IDBI Bank by October 2025. It is part of a wider goal to raise ₹47,000 crore through stake sales and asset monetisation announced in the 2025–26 Union Budget.

The aim is to reduce the government’s shareholding in public sector banks and bring in more private investment. This will also help banks work more efficiently and compete better in the market.

No Immediate Response Yet from Officials

According to the report by Reuters, there was no response from the Finance Ministry or SBI on the matter as the information was shared outside office hours. However, the details from the unnamed source give a clear picture of the government’s strategy for the financial year.