Public Sector Banks Gear Up for Subsidiary Listings

The finance ministry encourages PSBs to list their subsidiaries after enhancing operations, ensuring substantial returns. Around 15 PSB subsidiaries plan IPOs or divestments. SBI and Canara Bank are preparing major listings, focusing on improving governance and operational efficiency to maximize value.

In a strategic move, the finance ministry has directed public sector banks (PSBs) to monetize their investments in subsidiaries by exploring public listings, aiming for greater returns after scaling up operations.

Sources reveal that about 15 subsidiaries or joint ventures of PSBs are preparing for initial public offerings or divestment in the medium to long term. Banks are encouraged to invest in enhancing subsidiary operations and to capitalize on favorable opportunities for value realization.

State Bank of India, for instance, plans to eventually list SBI General Insurance and SBI Payment Services, aiming to increase profitability and reach. Meanwhile, Canara Bank is advancing its plans to list Canara Robeco AMC and Canara HSBC Life Insurance, having already approved a stake dilution in the latter venture.

(With inputs from agencies.)