SBI To Buy Additional 20% Stake In SBI Pension Fund For Rs. 229.52 Crore

State-owned lender State Bank of India (SBI) has announced its decision to acquire a 20% additional stake in SBI Pension Funds held by SBI Capital Markets for Rs. 229.52 crore. In an exchange filing on Tuesday, SBI said, "SBI has proposed for acquisition of 20% stake in SBI Pension Funds Pvt Ltd currently held by SBICAPS (a wholly owned subsidiary of SBI). All regulatory approvals in this regard have been obtained."

The state-owned lender mentioned that both the Reserve Bank of India (RBI) and the Pension Fund Regulatory and Development Authority (PFRDA) have given their approval for the planned acquisition.

SBI, the country's largest lender and holding company of SBI Pension Funds Private Limited (SBIPFPL) currently holds 60% stake in the company.

SBI and SBI Funds Management Ltd. will be the sponsors of SBIPFPL.

According to the information provided by the company, as of October 30, 2023, the Asset Under Management (AUM) of SBI Pension Funds stood at Rs 3.83 lakh crore, while the company's Profit After Tax (PAT) during this period stood at Rs 35.03 crore.

The acquisition will be completed by 15.12.2023, said the company.

SBIPFPL incorporated on 14.12.2007 was appointed as the Pension Fund Manager (PFM) to manage the pension corpus under National Pension System (NPS). The company obtained a license to operate as PoP (Point of Presence) in the year 2019 for the onboarding of NPS subscribers.

Prior to the acquisition of an additional 20%, SBI held a 60% stake or 1,80,00,000 shares in SBI Pension Funds.

After this latest transaction, the company's stake will increase to 80%. The remaining 20% stake in SBI Pension Funds is owned by SBI Funds Management.

Today, the share price of State Bank of India gained 0.57% at Rs 611.85 per share at 9:26 am IST. In the last 3 months, returns from SBI stock price has gained 7%, while in the last 6-months, the stock has gained 4.30%.

In its results for the quarter ending September 30, 2023, the State Bank of India (SBI) reported a strong 9.13% growth in its consolidated net profit at Rs 16,099.58 crore.