Dinesh Kumar Khara,Chairman,State Bank of India
This move is anticipated to enhance valuation and deliver superior returns for the parent company, State Bank of India
Mumbai: SBI Chairman Dinesh Kumar Khara has announced a strategic delay in monetizing the bank’s subsidiaries, SBI General Insurance and SBI Payment Services, to allow for further operational scaling.
This move is anticipated to enhance valuation and deliver superior returns for the parent company, State Bank of India (SBI).
Khara revealed in an interview with PTI that the monetization of these subsidiaries would be executed through the capital market.
However, he noted that this plan is not slated for the current financial year. Instead, the focus will be on scaling up operations to maximize potential returns.
In the fiscal year ending March 2024, SBI General Insurance saw a 30.4% increase in net profit.
Meanwhile, SBI Payment Services, a major player in the Merchant Acquiring Business, experienced a slight dip in net profit. Despite these mixed results, SBI continues to see robust demand for corporate credit, with loans worth Rs 5 trillion in the pipeline.