SBI, subsidiary to divest up to 1% stake in NSE
What's the story
The State Bank of India (SBI) and its subsidiary, SBI Capital Markets Ltd plan to sell up to a 1% stake in the National Stock Exchange (NSE). The divestment will be part of NSE's proposed ₹30,000 crore initial public offering (IPO). SBI Chairman CS Setty confirmed the bank's participation in this process. "We are participating in that divestment. We propose to divest 0.65%," he said.
Stake details
SBI's current stake in NSE
SBI currently holds a 3.23% stake in the NSE, while its subsidiary SBI Capital Markets owns a 4.33% stake in the country's largest stock exchange.
Setty clarified that there are no immediate monetization plans for other subsidiaries of the bank.
This comes after SBI and Paris-headquartered Amundi diluted about a 10% stake in SBI Mutual Fund last month.
Financial growth
SBI's mortgage portfolio to reach ₹10 lakh crore soon
Setty also highlighted SBI's dominance in the housing finance sector, saying its mortgage portfolio is likely to cross ₹10 lakh crore this quarter.
The bank has a nearly 28% market share in the home loan segment and has been working toward making these loans accessible across India.
"We should be reaching the ₹10 trillion-mark, hopefully in this quarter itself," Setty said.
Customer confidence
Transparent pricing and customer trust driving home loan success
Setty attributed SBI's success in the home loan segment to its transparent pricing and customer trust in the bank's processes.
"People trust SBI the most when it comes to taking a home loan... that paperwork is properly done, including the due diligence on the builder," he said.
The bank has over 460 home loan processing centers across India, further enhancing access to its housing finance products.