State Bank of India and its subsidiary SBI Capital Markets Ltd plan to jointly dilute up to 1 per cent of their stake in the National Stock Exchange (NSE) as part of the bourse's proposed Rs 30,000-crore initial public offering. SBI Chairman C S Setty said the country's largest lender intends to sell a 0.65 per cent stake, while SBI Capital Markets proposes to divest another 0.35 per cent. The eventual quantum could be lower depending on the participation of other NSE shareholders in the public offering, he said. SBI currently owns 3.23 per cent of the NSE, while SBI Capital Markets holds a larger 4.33 per cent stake in the country's biggest stock exchange.
No immediate plans for other subsidiaries
Setty said SBI does not currently have plans to monetise stakes in its other subsidiaries, following the recent listing of SBI Mutual Fund. SBI and its French partner Amundi last month diluted around 10 per cent in the asset management company through a Rs 9,800-crore public offer. The IPO attracted strong investor demand and was subscribed about 42 times.
Following the listing, SBI's stake in the mutual fund business declined from 61.76 per cent to 55.46 per cent. Amundi's holding fell by 3.7 percentage points to 32.56 per cent. The planned NSE stake sale would provide SBI Group another opportunity to unlock value from one of its major financial-sector investments.
Home loan portfolio nears Rs 10 lakh crore
Separately, Setty said SBI's mortgage portfolio is likely to cross Rs 10 lakh crore during the current quarter, supported by sustained demand for housing loans.
The lender had crossed the Rs 9 lakh crore milestone in its home loan book during the previous financial year and now expects to add another significant landmark to its housing finance business.
SBI commands close to 28 per cent of India's home loan market, according to Setty, giving it a dominant position in one of the banking industry's largest retail lending segments.
The bank has built a network of more than 460 home loan processing centres across the country to widen access to mortgage products.
Trust driving housing business
Setty attributed SBI's strong position in housing finance partly to customer confidence in its pricing, documentation and verification processes.
He said borrowers value the lender's due diligence, including scrutiny of builders and property-related documentation, when making a long-term financial commitment such as buying a house.
The SBI chairman also argued that housing finance has implications extending well beyond banks and individual borrowers. Residential and commercial real estate generate demand across a large number of industries, giving housing credit a substantial multiplier effect on economic activity.
More than 200 industries are linked directly or indirectly to commercial and residential real estate, he said.
Against this backdrop, Setty said home loans should be viewed not simply as another retail banking product but as an important component of India's broader economic growth.