Descriptive Prep: Brajesh Mohan

What is QIP? QIP allows listed companies to raise capital by issuing equity shares, fully or partly convertible debentures, or other eligible securities to Qualified Institutional Buyers (QIBs) without the need for extensive regulatory approvals required in public offerings such as IPO or FPO. QIPs are offered exclusively to QIBs, ensuring faster placement as these investors have the financial capacity and expertise to evaluate the investment. It is governed by the Securities and Exchange Board of India (SEBI) under the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.

Note: QIP as well as Bonds, Basel-III etc are all in our Finance Syllabus. Last year RBI asked 10 Marker on AT-1 Bonds and most student were not ready with the answer.

Separately, the bank’s board approved another ~20,000 crore fund raise by issuing bonds. In a regulatory filing, SBI said its board has “accorded approval for raising funds in INR by the issue of Basel III compliant Additional Tier 1 and Tier 2 Bonds, up to an amount of ₹20,000 crore to domestic investors during FY26, subject to GOI approval wherever required”. Additional Tier 1 (AT1) Bonds: — These are perpetual bonds (no fixed maturity) or have very long maturities. — They are considered "quasi-equity" because they can absorb losses by being written off or converted into equity if the bank’s financial health deteriorates (e.g., if capital ratios fall below a threshold). — They carry higher risk for investors and typically offer higher interest rates. Tier 2 Bonds: — These are subordinated debt instruments with a fixed maturity (usually 5–10 years). — They provide a secondary layer of capital, less risky than AT1 bonds but still subordinate to depositors and other senior creditors in case of bankruptcy. — They also help meet Basel III capital adequacy requirements.

SBI’s ₹25,000 crore QIP sees strong interest with 4.5x oversubscription, receiving ₹1.10 lakh crore in bids from 120 institutional investors. This makes it India's largest institutional fundraise through QIP. Domestic institutions composed roughly 60% of the bids, with companies including Quant Mutual Fund, White Oak Capital, and several leading mutual and life insurance funds actively participating. With a capital adequacy ratio (CAR) of 14.25% and a CET-1 ratio of 10.81% at the end of March 2025, the bank was already well-capitalised. This QIP will further strengthen Siddhartha’s CET-1 by about 60 basis points. The QIP was priced in the range of ₹806.75 to ₹831.70 per share, representing up to a 3% discount to the market price. Following the issue, the government's shareholding in SBI is expected to decline from 57.43% to approximately 55%.

ULI is the next Big thing and It is the most Important Question for ESI in RBI Gr. B 2025.

The committee will issue/form regulations for setting up five National Centres of Excellence (CoEs) for skilling, with a special emphasis on the manufacturing sector. The National Steering Committee (NSC) will be chaired by Skill Secretary Rajit Punhani. The NSC will include representatives from: Central ministries: Education, Heavy Industries, Commerce and Industry, Labour, among others. Private sector: Bajaj Auto, ITC Ltd, Hindustan Aeronautics, Hero MotoCorp, etc. State governments. NSC’s functions: Issue scheme guidelines. Provide broad policy directions. Allow reallocation of funds across components within the overall scheme allocation. Permit modification of minor components, not originally envisaged, if required for effective implementation. Cabinet has approved the setting up of five CoEs within existing National Skill Training Institutes (NSTIs) located in: Bhubaneswar, Chennai, Hyderabad, Kanpur, Ludhiana NSTIs Background: The first NSTI was established in 1963. Currently, there are 33 NSTIs in the country. NSTIs primarily focus on training instructors in: Hands-on skill transfer techniques. Modern training methodologies.