SBI to sell stake in SBI Gen, SBI Card and SBI Capital soon: Rajnish Kumar

Kumar said the bank is looking to bring in a partner for SBI Capital Markets (SBI Caps)

SBI net profit down 38% on higher provisioning
My (SBI's) total market cap is Rs 2.8 lakh crore just because of corporate NPA which is a small part of my business”, Rajnish Kumar SBI Chairman
Press Trust of India Mumbai
Last Updated : May 22 2018 | 8:35 PM IST

State Bank of India's chairman Rajnish Kumar today said the lender is looking at selling stakes in some of its subsidiaries over the next two years.

"All our subsidiaries have done exceedingly well. They hold large value which is waiting to be unlocked. We have plans to unlock that potential in the current as well as in the next year," Kumar told reporters here today.

The bank is planning to sell its stake in SBI General Insurance, SBI Card and SBI Capital Market, he said.

Last year, the lender had listed its life insurance arm, SBI Life Insurance.

Kumar said the bank is looking to bring in a partner for SBI Capital Markets (SBI Caps).

"This year we will be looking at bringing in a partner for SBI Caps. We will be shedding around 24-49 per cent stake," he said.

The bank is in the process of merging the project advisory business of SBI Caps with the bank.

"There was lot of duplication of project finance business of SBI and SBI Caps. The intent is to eliminate that duplication. We are looking at SBI Caps as a pure investment bank," Kumar said.

SBI's managing director (risk, IT and subsidiaries), Dinesh Khara, said the bank is looking at selling around 3-5 per cent stake in SBI General Insurance this year.

"We have to look at what value we get at that time," he said.

In FY20, Khara said the bank will look to list its credit card company, SBI Card.

*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: May 22 2018 | 8:35 PM IST

Next Story