New Delhi. State Bank of India (SBI) Chairman Dinesh Kumar Khara has said that the bank will further expand the business of its subsidiaries like SBI General Insurance and SBI Payments before monetizing them. Increasing the operations of these subsidiary companies will increase the valuation and SBI will be able to get better returns.

In an interview, he said that as far as subsidiary companies are concerned, their monetization will be through the capital market. He said, 'Among the eligible subsidiary companies to move forward on this path, there is definitely SBI General and to some extent SBI Payment Services can also be there. However, at present we do not have any such plan.'

No monetization in the current financial year

Khara said, 'Probably, we would like to increase them a little more. Only after that we will think of going to the capital market to monetize our stake in these companies. But, this will not happen in the current financial year.' The bank had infused additional capital of Rs 489.67 crore in SBI General Insurance Company Limited during the financial year 2023-24.

The company has also allotted ESOPs to the employees, due to which the bank's stake has come down from 69.95 percent to 69.11 percent. SBI General Insurance's net profit increased by 30.4 percent to Rs 240 crore in FY 2023-24. SBI holds 74 percent stake in SBI Payment Services Private Limited. The rest is held by Hitachi Payment Services.

Status of SBI shares

SBI shares closed with a slight decline at Rs 839.20 on Friday. SBI has given a return of about 30 percent to investors in the last six months. On the other hand, if we talk about the last one year, investors have made a profit of more than 46 percent from the bank.