SBI Caps tweaks business structure

With a view to grow its revenue beyond the infrastructure segment, SBI Caps Ltd, the investment banking arm of State Bank of India, has reworked its structure to form new business groups.

Now, the SBI group wants to expand its presence across for non-infrastructure sectors, while it continues to build upon domain expertise in infrastructure and project financing.

Arundhati Bhattacharya, managing director and chief executive said, “Infrastructure and advisory business linked with it will remain strong.”

Also, we have formed new groups with each of them looking after three-four sectors to pursue business opportunities.”

SBI Caps provides project advisory services, arrangements for structured finance, capital market services like equity issuances, mergers & acquisitions and arrangement for private equity.

It is a leader in project finance, with around 40 per cent the market share. It has a definite advantage of working closely with corporate banking teams at parent bank, said a top executive with one of its rival public sector investment banking unit.

Over the years, there has been shift in the focus from syndication and project advisory to restructuring-related work, Bhattacharya said.

SBI Caps reported a fall in net profit for 2011-12 due to dampened activity in the capital market.

Along with its four subsidiaries, it posted a profit after tax of Rs 265.30 crore in FY12, down from Rs 384.56 crore in 2010-11.