On Tuesday, the State Bank of India (SBI) announced its intention to acquire an additional 20% stake in SBI Pension Funds, currently held by SBI Capital Markets. SBI already holds a 60% stake in SBI Pension Funds and, with this transaction, aims to increase its ownership to 80%, acquiring the additional shares for a sum of ₹229.52 crore. The remaining 20% stake in SBI Pension Funds is currently held by SBI Funds Management.
As of October 30, 2023, SBI Pension Funds manages assets worth ₹3.83 lakh crore and has reported a Profit After Tax (PAT) of ₹35.03 crore.
SBI clarified in a regulatory statement that both the Reserve Bank of India (RBI) and the Pension Fund Regulatory and Development Authority (PFRDA) have granted approval for the planned acquisition. The transaction is being executed on an “arm’s length basis,” supported by a valuation report from M/s Deloitte Touche Tohmatsu India.
The acquisition, set to be finalized by December 15, aligns with SBI’s strategy to strengthen its presence in the pension fund management sector. SBI Pension Funds, established in 2007, holds the distinction of being the designated pension fund manager entrusted with overseeing the pension corpus within the National Pension System.
SBI’s stock, as of December 5, closed at ₹608.25, reflecting a 2.28% increase from the previous day’s closing at ₹594.70 per share. Over the past six months, SBI’s stock has demonstrated a notable gain of approximately 3.91%.
In the September quarter, SBI reported a consolidated net profit of ₹16,099.58 crore, marking a robust 9.13% increase compared to the corresponding period last year. This performance follows a consolidated net profit of ₹14,752 crore in the same period last year and ₹18,356 crore in the preceding June quarter.
