Public sector lender State Bank of India (SBI) has decided to scrap its plans to list its non-life subsidiary SBI General and is unlikely to dissolve equity too. Rajnish Kumar, Chairman, SBI said that at this point of time there is no need to dilute equity in SBI General and that the lender is not looking at any such plans to raise equity as it is generating sufficient via internal accruals.
“In the fourth quarter, the bank will divest some of its shares via an IPO in its credit card subsidiary SBI Card. The divestment of its shares in SBI Life through a follow-on issue was part of a commitment made to the markets regulator,” said Kumar.
Looking at the current scenario pertaining to IPO, we had made a commitment to Sebi that we would devolve an additional 6.5 percent stake by October 20. For maintaining this commitment, we sold 4.5 percent and the response has been higher than expected. The remaining 2 percent, we will divest by October 20,” said Kumar.