SBI, SBI Capital Markets To Dilute Nearly 1% Combined Stake In NSE Via Rs 30,000-Crore IPO, Says Chairman C S Setty

State Bank of India (SBI) and its subsidiary SBI Capital Markets are set to together dilute up to 1% of their stakes in the National Stock Exchange as part of the bourse's much-anticipated ₹30,000-crore initial public offering (IPO).

SBI Chairman C S Setty, in an interview with PTI, said the bank will sell a 0.65% stake in NSE, while SBI Capital Markets will divest another 0.35%.

“We are participating in that divestment. We propose to divest 0.65 per cent and 0.35 per cent by SBI Capital Markets because both of us hold the stake. So together, about 1 per cent as a SBI group... it could be less depending on any other shareholders joining,” Setty said.

SBI currently owns 3.23% of NSE, while SBI Capital Markets holds a 4.33% stake in the exchange. Together, the two entities are significant shareholders in India's largest stock exchange ahead of its proposed public listing.

Setty also said SBI does not have any immediate plans to monetise its holdings in other subsidiaries.

SBI's NSE Stake Sale And Recent Divestments

The combined NSE stake sale could ultimately be lower if other shareholders also participate in the offer.

The proposed divestment comes shortly after another major stake sale involving the SBI group. Last month, SBI and its French partner Amundi diluted around 10% of their combined holding in SBI Mutual Fund through the fund house's ₹9,800-crore public offer.

The issue was subscribed 42 times. Following the listing, SBI's holding in the mutual fund business declined to 55.46% from 61.76%, while Amundi's stake fell by 3.7 percentage points to 32.56%.

SBI Home Loan Portfolio Nears ₹10 Lakh Crore

Meanwhile, SBI's home loan portfolio is on course to cross ₹10 lakh crore, or ₹10 trillion, during the current quarter, according to Setty.

The country's largest lender had crossed the ₹9 lakh crore mark during the previous financial year. SBI now has nearly 28% of the home loan market and operates more than 460 home loan processing centres across India.

Setty attributed the bank's position in the mortgage market partly to transparent pricing and customer trust in its processes, including documentation and due diligence on builders.

“People trust SBI the most when it comes to taking a home loan, that paperwork is properly done, including the due diligence on the builder,” he said.

He also highlighted the wider economic significance of housing finance, noting that more than 200 industries depend on commercial and residential real estate.

“Home loan as a segment is very important for the economy,” Setty said, adding that it should be viewed as an integral part of India's economic growth rather than as a standalone banking product.