The shares of the largest bank in India jumped 2 percent in the day’s trade after its board approved the acquisition of 20 percent stake in SBI Pension Funds Pvt Limited
In the day’s trade on December 5, 2023, the shares of State Bank of India Limited closed at Rs. 608.25, up 2.28 percent from its previous day’s close price of Rs. 594.70 and its market capitalization is Rs. 5,42,973 Crores.
The Executive Committee of the Central Board of the State Bank of India has approved the acquisition of 20 percent stake of SBI Pension Funds Pvt Limited held by SBI Capital Markets Limited for a consideration of Rs. 229.52 Crores.
State Bank of India which is the holding company of SBI Pension Funds Pvt Limited currently holds a 60 percent stake in it and post the acquisition it will hold an 80 percent stake in it.
SBI Pension Funds Pvt Limited was incorporated on 14.12.2007 and has been appointed as the Pension Fund Manager (PFM) to manage the pension corpus under the National Pension System (NPS).
As of September 2023, it has a CASA Ratio of 41.88 percent, and its domestic deposits breakdown is as follows, 58.12 percent term deposits, 26.26 percent Savings Account, and 5.62 percent Current Account. It has reported a return on Assets (ROA) of 1.01 and a Net Interest Margin of 3.29 percent.
Its gross NPA has reduced from 3.52 percent in Q2FY23 to 2.55 percent in Q2FY24 and Net NPA has decreased from 0.80 percent in Q2FY23 to 0.64 percent in Q2FY24.
The company’s interest earned grew 20.99 percent from Rs. 2,89,972.69 Crores in FY22 to Rs. 3,50,844.58 Crores in FY23, accompanied by increasing profits of Rs. 35,373.88 Crores to Rs. 55,648.17 Crores.
State Bank of India is a banking and financial services provider, engaged in providing a wide range of products and services to individuals, commercial enterprises, commercial enterprises, etc. Its business segments include Treasury, corporate/wholesale banking, retail baking, insurance business, and other banking businesses.
Written by: Bharath K.S
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