SBI set to sell stake in insurance arm

State Bank of India (SBI) chairman Rajnish Kumar recently conveyed that the lender is looking to sell 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,” said Kumar.

A part of this plan includes selling of SBI’s 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 percent stake,” he said.

SBI’s managing director (risk, IT and subsidiaries), Dinesh Khara, said the bank is looking at selling around three to five per cent stake in SBI General Insurance this year. “We have to look at what value we get at that time,” he said to the Business Standard.