NPS industry may double or triple in 5-6 years: SBI Pension Funds MD & CEO

SBI Pension Funds eyes the next phase of NPS growth through corporate subscribers, MSMEs and the informal workforce while strengthening its digital distribution capabilities

SBI Pension Funds, the country’s largest pension fund manager with more than a third of market share — managing ₹6.14 trillion in assets as on August 31 — expects to grow broadly in line with the industry while maintaining its leadership position. Pranay Ranjan Dwivedi, managing director (MD) & chief executive officer (CEO), in an interview with Anjali Kumari in Mumbai, says the company is focusing on the next phase of growth through corporate NPS, micro, small and medium enterprises (MSMEs) and the informal workforce while strengthening digital capabilities. Edited excerpts: 

 

What is driving your assets under management (AUM) growth, government or private subscribers? 

We have crossed ~6 trillion in AUM and continue to manage around one third of the NPS pension fund industry. Government business remains our strong base, but going forward, we expect faster growth from corporate NPS, the all citizen segment, MSMEs, self-employed and the informal workforce. The next phase of NPS growth will increasingly come from the non-government sector. We expect the NPS industry to double or triple in the next five-six years. 

What is your equity and debt exposure right now? 

There is no single equity or debt allocation for SBI Pension Funds because we manage different schemes with different regulatory/ subscriber mandates. Government schemes currently permit equity exposure of up to 25 per cent, while non-government and multiple scheme framework (MSF) provide much wider flexibility. For example, our Jeevan Swarna scheme has 90 to 100 per cent equity, while Akshay Dhara has 25 to 50 per cent equity. 

What new products have you launched or planned? 

Two so far — Jeevan Suvarna, a 100 per cent equity scheme with a shorter 15-year tenure for younger subscribers, and a more balanced product with 25-50 per cent equity. We’re also promoting Pension Fund Regulatory and Development Authority’s (PFRDA’s) NPS Vatsalya, and considering one or two MSME-focused products for launch later this year. 

How has performance held up, given your equity returns lagged in the past? 

Our portfolio was conservative earlier, which caused us to lag peers in the post-Covid rally. We've since built out dedicated chief investment officers (CIOs) for equity and fixed income and a larger research team, and rebuilt the portfolio. Over the last seven to eight months, we’ve ranked first, second or in the first quartile across most schemes, and beaten the benchmark on every scheme in the last financial year. This includes during the sharp fall in January-March and the recovery that followed. 

StAR NPS is being positioned as an additional digital distribution channel for NPS. Can you explain how the platform works and what gap it is intended to address? Also, how do you see it complementing existing channels, such as eNPS and bank-led distribution? 

StAR NPS is a digital platform developed by BSE Technologies under the PFRDA framework for points of presence (PoPs) and pension agents to onboard and service NPS subscribers. It can significantly expand assisted digital distribution, particularly beyond large cities. We see it as an important additional distribution channel alongside eNPS, banks and other PoPs. 

NPS Swasthya is a health-linked pension scheme formalised by the pension regulator. When are you planning to launch it? 

NPS Swasthya has now moved beyond the proof-of-concept stage, with PFRDA issuing detailed operational guidelines in September 2026. It combines a market-linked healthcare corpus with health insurance protection for eligible medical expenses. We are studying the final framework and working on the required operational, technology and partner arrangements.