State Bank of India said that it will acquire a 20% stake in SBI Pension Funds Pvt Ltd for Rs 229.52 crore.
Currently, SBI holds a 60% stake in SBI Pension Funds. The bank will acquire the 20% stake held by SBICAPS, its wholly-owned subsidiary. Besides SBI and SBICAPS, SBI Funds Management owns a 20% stake in SBI Pension Funds.
As of October end, SBI Pension Funds had assets under management of Rs 3.83 lakh crore, and its net profit was Rs 35 crore.
The proposed acquisition is being done on an arm’s length basis, based on the valuation report of Deloitte Touche Tohmatsu India, the country’s largest lender said in an exchange filing.
SBI plans to complete the acquisition by December 15, as it has already received approvals from the Reserve Bank of India and the Pension Fund Regulatory and Development Authority (PFRDA) for the proposed transaction.
SBI Pension Funds was incorporated in 2007 and has been appointed as the pension fund manager to manage the pension corpus under the National Pension System.
On Tuesday, shares of SBI ended 2.3% higher on the National Stock Exchange at Rs 608.25.
Source: Economic Times