India’s largest bank State Bank of India, is planning to come up with its FPO in December this year in a bid to raise Rs.15,000 crore to fund its expansion plans and to continue to enjoy the position as the market leader.
SBI may require up to Rs.50,000 crore during next 3 years to grow its business and invest its insurance, private equity and wealth management business.
Also on similar lines of ICICI, SBI is planning to setup a holding company for its insurance and AMC subsidiary business. Currently SBI has JV in life insurance with Cardiff, France and runs a mutual fund in JV with Societe Generale. It is also looking for a partner for its general insurance business.
The bank has valued its life insurance business at $7 billion and plans to list the newly formed NBFC in coming months. SBI also plans to enter into new business segments of pension funds, advisory services, custodial services and financial planning.
After the FPO, the bank hopes to bring down Government stake to 51%.
Find this article at:
http://www.labnol.org/india/corporate/sbi-follows-icici-bank-path/702/
web: http://www.labnol.org/
email: amit@labnol.org
Add a Comment