SBI sees strong value addition from subsidiaries, SBI Cards top contributor

The rising awareness of life insurance as a protection product is giving strong traction to the sector

Corporate banks, which were off investors’ radar for a long time, are likely to regain support following recent developments, such as the progress and precedent in the Essar Steel bankruptcy resolution, and improving asset quality outlook. But in the case of State Bank of India (SBI), there are other triggers, such as the potential of its subsidiaries to create further value for the bank. 

The market, too, seems to have started recognising the same if the SBI stock’s outperformance to the Nifty Bank index is anthing to go by. SBI had gained nine per cent in a month (till Wednesday;