Saturday, September 23

SBI To Sell 49% Stake in Investment Arm SBI Capitals

Country’s largest public sector bank, State Bank of India (SBI) is selling 49% stake in its investment banking subsidiary SBI Capital Markets ( SBI Caps) while looking for a joint venture. The stake sale will be a part of 20,000 crore capital raising exercise by the lender of fiscal 2019 to fund growth.

The Bank is looking forward to a merger with its advisory businesses of SBI Caps. Chairman Rajnish Kumar said, “This year, we will be looking at bringing in a partner for SBI Caps. We will be shedding 24-49% stake.” Moreover, the bank is also proposing to sell its 3 to 5 % stake in SBI General Insurance in FY 18.

Kumar also added that they are looking forward to SBI Caps as a pure investment bank. Additionally, SBI had got its subsidiary Life listed through an offer for sale of its own shares.


Speaking in this context, Kumar also said,

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.

Founded in August 1986, the investment arm of SBI, SBI caps has reported a net profit of Rs. Rs 327 crore for FY18 which was up 30% from Rs 252 crore in FY17.

With wholly owned 5 subsidiaries —SBICAP Securities, SBICAP Trustee Co, SBICAP (UK), SBICAP (Singapore), and SBICAP Ventures, SBI cap is the largest domestic investment bank that offers all investment banking and corporate advisory services. These services include project advisory and loan syndication, structured debt placement, capital markets, mergers & acquisitions, private equity and stressed assets resolution.