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MUMBAI: State Bank of India (SBI) is unlikely to list companies or take a view on its stake in Yes Bank in the current financial year unless market conditions improve significantly.
Last year, SBI was planning to reduce the stake in its mutual fund holding of SBI Fund Management and go for initial public offer (IPO) in the current fiscal. The bank was also looking to list its non-life arm SBI General Insurance. Additionally, the bank had to plan for its holding in Yes Bank with the closure period ending at the end of the current financial year.
head of the SBI Dinesh Khara said, “With this kind of market, it is not the time to list affiliated companies. If the markets are like this for the whole current year, it is impossible for us to take public companies. We have to wait for the right time and watch. Good capital companies and can support growth ambitions.”
On Yes Bank, Khara said the bank has not made a call because the markets are not very encouraging right now. “We’re going to have to make a board-level call,” he said.
Participating companies will help the bank free up capital and also give investors a better view of the group’s value. Currently, there is a large corporate discount that includes SBI because the sum of the various businesses it owns is more than the total market capitalization.
As per market cap of Rs 4. 3 lakh crore of SBI, its subsidiary SBI Life It has a market capitalization of about 1.2 million. Yes Bank, in which SBI holds 26%, has a market capitalization of Rs 33,223 crore. SBI cards are valued at Rs 78,828 crore under current market prices. Bank shareholders, apart from being the largest bank owner, have an indirect stake in the country’s largest private life insurance company, the largest mutual fund, among the top companies and investment banks.
Last year, SBI was planning to reduce the stake in its mutual fund holding of SBI Fund Management and go for initial public offer (IPO) in the current fiscal. The bank was also looking to list its non-life arm SBI General Insurance. Additionally, the bank had to plan for its holding in Yes Bank with the closure period ending at the end of the current financial year.
head of the SBI Dinesh Khara said, “With this kind of market, it is not the time to list affiliated companies. If the markets are like this for the whole current year, it is impossible for us to take public companies. We have to wait for the right time and watch. Good capital companies and can support growth ambitions.”
On Yes Bank, Khara said the bank has not made a call because the markets are not very encouraging right now. “We’re going to have to make a board-level call,” he said.
Participating companies will help the bank free up capital and also give investors a better view of the group’s value. Currently, there is a large corporate discount that includes SBI because the sum of the various businesses it owns is more than the total market capitalization.
As per market cap of Rs 4. 3 lakh crore of SBI, its subsidiary SBI Life It has a market capitalization of about 1.2 million. Yes Bank, in which SBI holds 26%, has a market capitalization of Rs 33,223 crore. SBI cards are valued at Rs 78,828 crore under current market prices. Bank shareholders, apart from being the largest bank owner, have an indirect stake in the country’s largest private life insurance company, the largest mutual fund, among the top companies and investment banks.
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