SBI Life Insurance
SBI postponed its IPO plan for its general insurance arm. Chairman of SBI has said that it does not need additional capital now. SBI Credit Card IPO will list in the first quarter of the FY 2020, he added.
A source said that lakhs of investors showed their interest in SBI Credit Card IPO. Because it will more beneficial for investors.
According to the reports, SBI was looking for an initial public offering for its general Insurance in FY 2021. A public source asked SBI chief if SBI Life IPO for general insurance will happen in the next financial year. For this, he replied that there is no need for additional capital.
SBI General Insurance valued at Rs 12,000 crore. It is a joint venture between India’s largest lender SBI and Insurance Australia Group with a 26% ownership.
SBI Chief explained that the additional stake sale in SBI life required to divest an additional 2 percent of stake as per the Sebi norms. But he has time to execute the same till October 2020.
As of the reports, SBI Card IPO will launch in January-March FY 2020. State bank of India will take a call on the stake sale, said a source.
India’s credit card business is still small compared to its debit card business. SBI credit card business is the second largest in the country. As of the source, SBI has owned 74 percent of stake in the SBI credit card business. Meanwhile, the foreign partners of SBI also choose to dilute their portion of a stake through the IPO.