https://indianmasterminds.com

ADVERTISEMENT
ADVERTISEMENT

Centre Asks 15 PSU Banks to Explore Subsidiary IPOs; SBI Ecosystem in Spotlight

India pushes PSU bank IPOs; SBI’s subsidiaries hold strong monetisation potential amid robust results and supportive markets.
Indian Masterminds Stories

The Finance Ministry has asked 15 PSU banks to explore IPOs or stake sales of their subsidiaries and joint ventures. The move aims to unlock capital, improve governance, and deepen investor interest in public sector banking assets. Concerns have surfaced over the scalability and valuation of these subsidiaries, but analysts believe banks may respond selectively.

SBI’s Ecosystem May Yield the Biggest Value

“Not every subsidiary is IPO‑ready … the real unlocking lies with SBI’s ecosystem,” said a senior Mumbai banker.

  • SBI stands out with a suite of profitable arms—Mutual Fund, Life, General Insurance, and Payments.
  • SBI Mutual Fund, with ₹11 lakh crore in assets under management, is valued at around ₹96,700 crore.
  • SBI General Insurance recorded a ₹509 crore net profit in FY25.
  • SBI Payments, in which SBI holds 74% and Hitachi 26%, processes over 33 lakh merchant transactions.

Additional PSU Banks Poised to Follow

Canara Bank plans to take Canara Robeco AMC public and dilute its 14.5% life insurance JV stake.
“IndiaFirst Life, Baroda BNP AMC … could emerge when they scale,” noted Nirav Karkera of Fisdom.
Yet, many subsidiaries still lack enough scale or suitable JV structures for IPOs.

Also Read: SBI Strengthens Co-Lending Partnership with Paisalo to Reach More Small Businesses in Tier 2, 3 and Rural India

Regulatory Caps May Limit Full Monetisation

SEBI mandates PSU banks retain 85–90% control post‑IPO. That restriction could limit monetization efforts, especially for smaller subsidiaries. By contrast, PNB MetLife—where PNB holds a 30% stake—offers less monetization potential under existing structures.

Market Lift from Financial Sector Momentum

The PSU listing drive aligns with rising SIP flows, robust credit demand, and improved valuation in financial services. “Every time strategic divestment slows, focus shifts to PSBs,” said a Mumbai banker.
Despite LIC’s low valuation, analysts say the current window favors financial listings.

Healthy PSU Fundamentals Support the Move

PSU banks reported strong FY25 results:

  • Combined net profits rose 26% to ₹1.78 lakh crore
  • Net NPA ratio declined to 0.52%
  • These gains have fueled an 18% YTD rally in the Nifty PSU Bank Index.

“If done right, these listings could trigger a meaningful rerating,” said Trivesh D., COO at Tradejini.

About SBI

State Bank of India (SBI) is India’s largest public sector bank with a 23% market share in assets and 25% of total loans and deposits. Founded in 1955, it serves over 500 million customers via more than 22,500 branches, 63,580 ATMs, and 82,900 banking outlets. SBI is a Fortune 500 company and a statutory corporation under the Government of India. Its diversified business includes retail, corporate, treasury, investment banking, asset management, credit cards, and insurance through subsidiaries like SBI Life, SBI Mutual Fund, SBI Card, and SBI General Insurance.

Also Read: Bank of Maharashtra Partners with SBI Card to Launch Co-Branded Credit Cards


Indian Masterminds Stories
ADVERTISEMENT
ADVERTISEMENT
Related Stories
ADVERTISEMENT
ADVERTISEMENT
NEWS
shahdol-village Footballers MP
Shahdol Footballers to Train in Germany; PM Modi Highlights Madhya Pradesh’s Sporting Revolution
NeGD
Digital India Milestone: NeGD Enables Nationwide Integration of 1,938 e-Services via DigiLocker & e-District Platforms
Tamil Nadu Police: Senior IPS Officer G Venkatraman
IPS G. Venkataraman Appointed Acting DGP of Tamil Nadu Amid Deviation from SC Guidelines, Following Shankar Jiwal’s Retirement
MP News
MP: CM Yadav Unveils Rs. 10 Crore Development Blueprint for Chhatarpur; Stadiums, Medical College Boost, and Major Infra Push Announced
Yogi Government
UP to Introduce India’s First 'Ease of Doing Business Bill 2025', Yogi Government To Decriminalize 99% Industrial Laws
Madhya-Pradesh-State-IAS
Major IAS Transfers Expected in Madhya Pradesh After Chief Secy Anurag Jain's Extension, Ujjain & Indore Expecting Major Bureaucratic Overhaul
UP Police
UP Govt Transfers 8 IPS Officers in Major Police Reshuffle; Shraddha Narendra Pandey New SP Kanpur Dehat, Rahul Bhati Posted as SP Shravasti
ips-officer Latest
Systemic Oversight? Convicted IPS Officer Jagdish Patel Led Gujarat Conviction Rate Panel Before Sentencing in Bitcoin Extortion Case
ADVERTISEMENT
ADVERTISEMENT
Videos
IPS Mukesh Kumar Bhamoo
Managing Elections, Communal Tensions, and Public Safety – Meet IPS Mukesh Kumar Bhamoo | Video Interview
WhatsApp Image 2025-08-25 at 13.56
Operation Hunt: IPS Dr. Karanraj Vaghela’s Mission to Nab Valsad’s Most Wanted
Dr
Resisted Flawed Schemes, Transferred Thrice In Three Months, Found Solace In Writing
ADVERTISEMENT
UPSC Stories
IAS Minnu P M
“Lazy, Sleepy, Yet Determined”: Minnu P M’s Honest Take on Cracking UPSC
Minnu PM, once a clerk in Kerala Police, cleared UPSC with AIR 150 after five years of struggle. Her...
IPS Ashish Tiwari
From IIT and Investment Banking to Public Service, Meet IPS Ashish Tiwari 
Ashish Tiwari, IIT graduate and former investment banker, chose public service over global finance. As...
WhatsApp Image 2025-08-12 at 7.27
First Attempt IRS, Fourth Attempt IPS: The Relentless Pursuit of Jitendra Kumar Yadav Who Cracked UPSC 3 Times
IPS Yadav is originally from Chhattisgarh. He was first selected for the IRS through UPSC and later for...
Social Media
Masahiro Hara
From Go Board to Global Use, How QR Codes Changed the World: IRAS Officer Ananth Rupanagudi Spotlights Masahiro Hara’s Vision
IRAS officer Ananth Rupanagudi shared a video on Masahiro Hara, the inventor of QR codes, highlighting...
IFS Susanta Nanda Video
A Mother’s Duty: Tigress Watches Over Cubs Splashing in Waterhole — Heartwarming Video Shared By Retd. IFS Officer Susanta Nanda
A tender wildlife video shared by Retd. IFS officer Susanta Nanda shows a tigress keeping watch over...
Mohanmala
Kaziranga Mourns: Beloved Elephant Mohanmala Passes Away After Five Decades of Service
Kaziranga National Park mourns the loss of Mohanmala, a beloved elephant who served over 50 years as...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Latest
shahdol-village Footballers MP
Shahdol Footballers to Train in Germany; PM Modi Highlights Madhya Pradesh’s Sporting Revolution
NeGD
Digital India Milestone: NeGD Enables Nationwide Integration of 1,938 e-Services via DigiLocker & e-District Platforms
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Videos
IPS Mukesh Kumar Bhamoo
WhatsApp Image 2025-08-25 at 13.56
Dr
ADVERTISEMENT
ADVERTISEMENT