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SBI chairman Dinesh Kumar Khara has said that the bank will further expand the business of subsidiaries like SBI General Insurance and SBI Payment before monetizing them.

State Bank of India (SBI) chairman Dinesh Kumar Khara has said that the bank will further expand the business of subsidiaries like SBI General Insurance and SBI Payment before monetizing them. Increasing the operations of these subsidiaries will increase the valuation and SBI will be able to get better returns.

He told PTI-Bhasha in an interview that as far as subsidiaries are concerned, their monetization will be done through the capital market. He said, "Among the subsidiaries eligible to move forward on this path, there is SBI General and to some extent SBI Payment Services. But, at present, we do not have any such plan. "

Khara said, "Perhaps, we would like to increase them a little more. Only after that, we will think of going to the capital market to monetize our stake in these companies. But, this will not happen in the current financial year. ”The bank had infused additional capital of Rs 489.67 crore in SBI General Insurance Company Limited during FY 2023-24.

The company has also allotted ESOPs to the employees, due to which the bank's stake has come down from 69.95 percent to 69.11 percent. SBI General Insurance's net profit increased by 30.4 percent to Rs 240 crore in FY 2023-24. SBI holds a 74 percent stake in SBI Payment Services Private Limited.

The rest is held by Hitachi Payment Services. Khara also said that the demand for loans from the corporate sector is increasing and loans worth Rs 5,000 billion are in various stages of approval. He said that, unlike the last few years, corporates have now started looking for loans for working capital needs and capacity expansion.

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