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SBI eyes spot among world's top 10 banks by market value in 5 years
C S Setty, chairman, SBI, said, 'The scope for value creation for the stakeholders is potentially very high. So the larger ambition is, if the market supports, whether we can be part of the top 10 global banks in terms of the market capitalisation (five years).'
'The effort is to ensure that we are consistent in our performance—financial performance, improvement in market share (of deposits and advances) and customer satisfaction,' he said after the listing of shares issued under QIP at NSE.
SBI's market capitalisation has risen from Rs 3.25 trillion at the end of March 2021 to Rs 4.40 trillion in FY22, Rs 4.67 trillion in FY23, Rs 6.71 trillion in FY24 and Rs 7.13 trillion at the end of March 2025, according to its analysts' presentation for FY25. The market capitalisation based on Wednesday's trading price stood at Rs 7.53 trillion.
The QIP was oversubscribed 4.5 times, with foreign investors accounting for 64.3 per cent of total demand. Marquee long-term investors received approximately 88 per cent of the final allocation, including 24 per cent of the issue size placed with foreign long-term investors.
'We knew that it would be oversubscribed, but this kind of overwhelming response (4.5 times) is a pleasant surprise for us,' Setty said.
The bank issued 306 million equity shares to Qualified Institutional Buyers (QIBs) at a price of Rs 817 (including a premium of Rs 816.00 per equity share), aggregating Rs 25,000 crore. The issue opened on 16 July 2025 and closed on 21 July 2025.
The capital will augment SBI's Common Equity Tier-1 (CET-1) buffer. The CET-1 will rise to approximately 11.50 per cent from 10.81 per cent as on 31 March 2025, supporting calibrated credit growth across retail, MSME and corporate segments.
As for raising debt capital, Setty said additional Tier-I (AT1) bonds would essentially be for replacing the existing Tier-I paper maturing over a period. The Tier-II would be a mix of replacement and new funds. The bank's board has given the nod for raising up to Rs 20,000 crore via AT1 and Tier-II bonds.
Asked about further reduction in term deposit rates, he said, 'About the industry, I think the interest rates are easing on the deposits.'
The bank has already slashed short-term deposit rates by up to 60 basis points so far in the current financial year. In June, it also reduced interest rates on savings bank deposits to 2.5 per cent from 2.7 per cent earlier.
The bank has recently cut the Marginal Cost of Funds-based Lending Rate (MCLR)—a benchmark for lending to businesses—by 15 or 20 basis points across tenors. 'MCLR is formula driven; it gets readjusted as we move forward,' he added. He declined to elaborate on interest rates, citing a silent period ahead of results for Q1FY26.
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