In a big push to unlock value and strengthen the capital base of public sector banks (PSBs), the Ministry of Finance has asked leading PSBs to hasten the monetisation of their subsidiaries through IPOs. These bank subsidiary IPOs are in line with broader disinvestment and capital infusion plans and could see a slew of listings from key financial arms like SBI General Insurance, PNB MetLife, Canara HSBC Life Insurance and more.
🔧 The Big Push Behind Bank Subsidiary IPOs: Finance Ministry’s Directive
As of June 2025, the government has reiterated its call to PSBs to list their viable and profitable subsidiaries and joint ventures in the market. More than 15 such entities are being readied for potential IPOs or stake sales, according to official and insider sources.
This is part of a larger capital optimisation framework to enable PSBs to scale up their core lending and banking business while unlocking the true value of their ancillary businesses. Banks have also been asked to professionalise their governance, streamline decision-making and bring in more transparency in their subsidiary operations before monetisation.
📈 Who’s on the IPO Radar?
Here are the top bank subsidiary IPOs likely to hit the IPO street:
#1 SBI General Insurance IPO
Founded in 2009, SBI General Insurance has grown into one of India’s top general insurers with a comprehensive product suite across health, motor, property and SME insurance segments. Backed by State Bank of India’s vast branch network, it made a profit of INR 509 crore in FY2024-25. With SBI reducing its stake to 68.99%, the insurer is IPO ready, and its listing could open up more private participation in India’s insurance space.
#2 SBI Payment Services IPO
A key player in India’s growing digital payments ecosystem, SBI Payment Services is one of the top merchant acquirers in the country. With over 33 lakh payment touchpoints, including 14 lakh POS terminals, the company is driving India’s cashless economy. It will list once operational scalability and profitability milestones are met.
#3 Canara HSBC Life Insurance IPO
A joint venture of Canara Bank (51%), HSBC Insurance (26%) and Punjab National Bank (23%), Canara HSBC Life Insurance has filed its DRHP with SEBI. The IPO will be an offer-for-sale of 23.75 crore shares with listing expected by November 2025. The company made a PAT of INR 113 crore in FY2023-24 and has assets under management of over INR 40,000 crore.
#4 Canara Robeco AMC IPO
A joint venture of Canara Bank and Robeco Group, Canara Robeco AMC is a fast-growing player in India’s INR 50+ trillion mutual fund industry. The AMC is undergoing internal restructuring and compliance preparation for an IPO. The listing will open up market access to PSB-backed investment management companies.
#5 PNB MetLife Insurance IPO
After a DRHP filing in 2018, the PNB MetLife IPO was deferred due to market conditions and corporate restructuring. With PNB’s merger with United Bank and OBC complete and MetLife expanding reach and products, the PNB MetLife IPO is in “standby mode”. Management has hinted at a renewed push once valuations align and sector sentiment improves.
#6 IndiaFirst Life Insurance IPO
Owned by Bank of Baroda (65%), Union Bank (9%) and Carmel Point Investments (26%), IndiaFirst has got board approval for stake dilution. With over INR 30,000 crore AUM and consistent profits, the IPO is in the medium-term horizon.
#7 Nainital Bank IPO
A small but strategic regional bank, Nainital Bank is 98.6% owned by Bank of Baroda. Currently in growth phase, listing plans are expected post-operational scale and digital expansion.
👥 Policy Implications and Sector Impact
The directive to monetise subsidiaries is not just about raising capital but also about governance reforms, operational efficiencies and competition among PSB-linked financial firms. It’s a policy shift from protectionist to value-based market engagement.
These IPOs will attract a mix of institutional, retail and strategic investors, thereby widening the shareholder base of PSB-linked entities. Also, these listings will be a valuation benchmark for unlisted peers and will spur private sector innovation.
📊 Outlook
While timelines may vary, the trend is clear. The next few quarters will see multiple PSB subsidiaries going public. The government is keen to make the IPO process smoother, encourage investor participation and balance monetisation with long-term value creation.
Investors should watch these listings closely, not just for returns but for insights into the evolving structure of the Indian financial services ecosystem.
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