The Finance Ministry has asked the public sector banks (PSBS) to consider listing their investment in subsidiaries after increasing the operations. This will enable them to get good returns on their investment. According to the news agency PTI, sources say that about 15 subsidiary or joint ventures of public sector banks are ready for IPO or DIVESTMENT in the long term from medium.
Sources said that wherever necessary, banks should invest to increase the operations of their subsidiaries or joint ventures and try to unlock the value of this investment at the right time. Banks should improve governance, professional decision making process before montage. This will improve the operational efficiency of their subsidiaries.
The listing of SBI General Insurance and SBI Payment Services can be considered
For example, State Bank of India (SBI) can consider lizzing SBI General Insurance and SBI Payment Services after increasing the operations in future. On February 24, 2009, SBI General Insurance Company Limited, which was incorporated, earned a profit of Rs 509 crore during the financial year 2024-25. SBI holds 68.99 percent stake in the company. SBI Payment Services Private Limited has a 74 percent stake in SBI. The remaining shares are with Hitachi Payment Services.
Process of listing of Canara Robico AMC started
Canara Bank has even started the process of listing of its asset management joint venture Canara Robco AMC. Apart from this, it is also preparing to list its joint venture Canara HSBC Life Insurance Company in the life insurance segment. Canara Bank has already approved the process of selling 14.5 percent stake in Canara HSBC Life Insurance Company.