SBI Subsidiaries: ₹3.5 Trillion 'Hidden' Gems

Of ₹1.11 lakh cr profit for the bank in FY25, these entities contributed ₹14,217 cr

- BENN KOCHUVEEDAN @ Mumbai

WITH the chairman CS Setty hinting last week that the State Bank is planning to take its mutual fund and general insurance arms public, let's look at the goldmine that the subsidiaries have become over the years for the parent bank, which many analysts believe are worth a whopping ₹3.5 lakh crore.

"In our portfolio, there are two companies we are seriously considering — the asset management company (SBI Mutual Fund) and SBI General Insurance for IPOs. However, the timelines are yet to be decided. These two companies are strong candidates for listing," Setty told reporters in Hyderabad last Saturday.

The development follows a directive from the finance ministry to public sector undertakings to list their subsidiaries as part of a wider government strategy of improving returns on state-owned assets, unlocking value, and enhancing governance standards.

Major subsidiaries

Of the five main subsidiaries, SBI Life (the industry leader among private players), and SBI Cards (the arm that handles the bank's credit card business wherein it is the second largest with a tad over 20 million customers) are already listed with a market cap of ₹1.84 lakh crore and ₹62,035 crore, respectively as of August 14. If SBI moves ahead with IPOs, starting with SBI Mutual Fund, it could mark a valuation inflection point, with significant re-rating potential, according to analysts.