SBI Mutual Fund IPO: SBI Mutual Fund IPO plan on hold for now, says SBI chairman | Rare Techy

Chairman Dinesh Kumar Khara said on Wednesday that the planned share sale of the bank’s mutual fund arm has been put on hold for now. Mutual Fund, the country’s largest asset manager with about Rs 6.5 billion in assets under management, had shortlisted seven merchant bankers for a USD 1-billion IPO in February. But the market soon changed with Russia’s invasion of Ukraine at the end of that month.

“Currently there is no plan to list SBI Mutual Fund,” Khara told reporters on the sidelines of the national bank’s meeting here. Without giving any reason, he said that the IPO plan is on hold for now.

On December 15, 2021, SBI announced its plan to offload 6 percent stake in SBI MF through an IPO and planned to raise around $1 billion.

SBI owns a 62.6 percent stake in SBI Mutual Fund, while the remaining 36.8 percent is with French insurer Amundi Asset Management, which planned to divest its 4 percent stake.

Amundi was initially held by Societe Generale Asset Management, a subsidiary of France’s Societe Generale which was transferred to Amundi in June 2011.

SBI has reportedly selected seven i-bankers – BofA Securities, Citi, HSBC Securities,

Kotak Capital, SBI Caps and — to sell shares.

SBI has two other publicly traded companies — and SBI Card — and three more that could be monetized — the mutual fund arm, the general insurance vertical and the investment banking arm, SBI Caps.

SBI Life was listed in 2017. At a share sale of Rs 8,400 crore, the IPO raised 3.58 times. SBI Card was listed in a total issue of Rs 10,354-billion in March 2020 just before the outbreak of the Covid pandemic.

If listed, SBI MF or SBI Fund Management, would have been the fifth listed fund manager after

Nippon Life India AMC and.

Meanwhile, the SBI chief said credit demand, which hit an eight-year high of 18 percent last week, was coming from all sectors, including SMEs, retail and agriculture, and that credit growth was a clear indication that the economy was . on return.

“There is healthy demand in the housing sector even as rates are rising. Higher rates have not caught the demand,” Khare said, adding that he expects credit growth to moderate going forward but remain healthy overall at around 15 percent. -16 after the holiday. pickup is normalized.

On the launch of the digital currency by the RBI on Tuesday, he said the CBDC pilot has gone well on the first day. He also said he doesn’t think bank deposits will be affected by the full-scale launch of CBDC, which could happen next year.

He also said that there is no concern about the revised book as it is performing better than expected. NARCL or national bad bank, is now very active. “We will see good progress on that front,” he said, adding that banks are exploring all possible options to resolve bad loans, including the NARCL route.