Public Sector Banks (PSU) to list subsidiaries
The Ministry of Finance has asked PSU to list their subsidiaries on the stock markets. About 15 companies are preparing for the IPO. The Ministry issued the directive as a component of a broader plan to increase returns on state-owned capital, unlock value, and strengthen governance.
These banks are likely to launch IPOs of subsidiaries soon:
State Bank of India
SBI Life Insurance Company, the subsidiary engaged in business of life insurance and annuity. The company offers a range of life insurance products, including 23 individual and 8 group plans across protection, pension savings and health solutions.
SBI General Insurance, established in 2009, posted a net profit of Rs 509 crore in FY25. SBI’s stake in the firm was slightly reduced to 68.99 per cent after fresh share allotments.
SBI Payments Services, one of India’s largest merchant acquiring platforms, had 33.10 lakh payment touchpoints, including 13.67 lakh POS machines as of March 2024. SBI holds a 74% stake in the company, and the remaining is held by Hitachi Payment Services.
Canara Bank
They have already initiated the IPO process to list their asset management joint-venture, Canara Robeco Mutual Fund. The company was established in 1993 as Canbank Mutual Fund, and restructured in 2007 following a joint venture with the Robeco Group.
Canara Bank is also preparing to list the life insurance arm, Canara HSBC Life Insurance Company. The bank has approved the dilution of 14.5% stake, thus making a move towards monetising its non-core business.
Bank of Baroda
IndiaFirst Life Insurance, where Bank of Baroda controls 65% stake. For the IPO, they are looking to raise about Rs 5 billion through fresh issue and an offer for sale of 141 shares. The company plans to wait until they have Rs 300 billion in assets under management, and an improved growth status to showcase.
Punjab National Bank
PNB MetLife India Insurance Company Limited, a joint venture with MetLife International Holdings, offers a range of life insurance products. Their initial plans to IPO were put on hold, but now with the government encouraging PSU subsidiaries listing, the company could be going forward with their plans to list.
