The country’s largest Bank, State Bank of India (SBI), is considering taking two of its subsidiaries—SBI General Insurance and SBI Mutual Fund—public. While both are seen as “strong candidates” for listing, SBI Chairman C S Setty said no timeline has been set for either IPO.
Setty made the remarks over the weekend at the launch of specialised health insurance branches of SBI General Insurance in Telangana and Andhra Pradesh—SBI General’s first foray into this space, with plans to expand to other states soon. The move aims to deepen penetration in underserved markets and offer more health insurance products.
“We have two companies in our portfolio which we are seriously considering—SBI Mutual Fund IPO and SBI General Insurance IPO. But the timelines are yet to be decided. These two are strong candidates for listing,” Setty said.
If these IPOs materialise, there could also be a shareholder quota in the allotment, giving existing investors of SBI a potential advantage.
Policy Push for PSB Subsidiary IPOs
The SBI listing plans also align with the Ministry of Finance’s recent directive to public sector banks to accelerate the monetisation of their profitable subsidiaries through IPOs. This broader push aims to unlock value, strengthen capital bases, and improve governance. Alongside SBI General Insurance and SBI Mutual Fund, other potential listings on the radar include PNB MetLife, Canara HSBC Life Insurance, IndiaFirst Life Insurance, and Canara Robeco AMC.
Strong Business Profiles, But No Roadmap Yet
SBI General Insurance and SBI Mutual Fund are big players in India’s financial services space. The asset management arm has grown to become one of the largest mutual fund houses in the country, while the general insurer has a broad portfolio of retail and corporate insurance.
Setty didn’t elaborate on the size, structure or valuation of the offerings saying the IPO plans are still under review.
Economic Backdrop: US Tariffs
Setty also spoke about the macroeconomic issues, particularly the impact of US tariffs on Indian exports. He said that due to India’s geographic and sectoral diversification, the direct impact is limited. However, export-oriented sectors like chemicals, textiles and gems & jewellery, which have higher dependence on US markets, may face headwinds.
“The banking sector’s exposure to these industries is limited,” Setty said, adding the central government is monitoring the situation and will provide support to the affected sectors if the tariff measures persist. Banks, including SBI, will also step in if needed.
“The most important thing is that the uncertainty surrounding tariffs should be resolved quickly,” he said, hoping for an early resolution.
Bancassurance and Recruitment
On bancassurance, Setty said the ongoing reforms are to ensure customers are not sold unsuitable products and policymakers, banks, and insurers are working together to increase insurance penetration.
On human resources, Setty said SBI has been recruiting staff for over a decade and will continue to do so to meet growth and service demands.
Strategic Health Insurance Expansion
The newly launched specialised health insurance branches are the “first of their kind” for SBI General Insurance and part of the insurer’s vision to become the “health insurer for every Indian”. The expansion is in line with SBI’s overall strategy to make insurance more accessible to India’s large and diverse population.
Market Implications
While the absence of a concrete IPO timeline tempers immediate market excitement, the eventual listing of these subsidiaries could unlock significant shareholder value for SBI. Given the robust growth trajectory of both the general insurance and mutual fund sectors in India—fueled by rising financial literacy, growing middle-class affluence, and regulatory support—investors are likely to watch the developments closely.
For now, the market will be monitoring for any signs of a formal roadmap, regulatory filings, or mandates to investment banks, which would signal the transition from consideration to execution.
For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.