Mumbai, May 22: 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 a 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.