The nation's biggest bank, State Bank of India (SBI), raised ₹25,000 crore from institutional investors through a Qualified Institutional Placement (QIP). This is the first time SBI has raised money from the equity market since 2017.
A QIP: What is it?
By issuing shares only to institutional investors, such as mutual funds, insurance companies, and overseas investors, listed companies can raise capital through a QIP. It's less regulated and faster than a public issue.
Why Was This Done by SBI?
To sustain its loan expansion: SBI can lend more when it has more capital.