The central government is once again planning to list more public sector company subsidiaries in the stock market. According to reports, the Finance Ministry has asked over 15 subsidiaries and joint ventures of PSUs to explore the option of launching an IPO or strategic stake sale.
With the market performing well and the Indian economy in a strong position, experts believe now is a good time to bring profit-making PSU arms to the stock market. Among the many options, subsidiaries of the State Bank of India (SBI) are expected to attract the most investor interest.
SBI Has Multiple Market-Leading Subsidiaries
SBI is India’s largest public sector bank and owns several successful subsidiaries. These include:
- SBI Mutual Fund
- SBI Life Insurance
- SBI General Insurance
- SBI Payment Services
Among these, SBI Mutual Fund is already a leading name in the asset management space. It is the largest AMC in India with an AUM (Assets Under Management) of over Rs.11 lakh crore as of June 2025. Analysts estimate its valuation to be around Rs.96,700 crore.
SBI Life and SBI General Also in Focus
SBI Life Insurance and SBI General Insurance are also considered highly valuable assets. SBI General earned a profit of Rs.509 crore in the last financial year and has shown steady growth in the general insurance segment.
SBI Payment Services, which plays a key role in merchant banking and payment solutions, is another strong arm. However, a 26% stake held by Hitachi may need resolution before any IPO plans move ahead.
Long-Term Players with Strong Fundamentals
Experts say that most of SBI’s subsidiaries have been in business for over a decade and have built strong operations. According to Trivesh D, COO of Tradezini, these companies have more scope to grow and scale up further, especially with the support of SBI’s brand and market trust.
He also added that investors may also show interest in other PSU-linked AMCs like:
- IndiaFirst Life
- Canara Robeco AMC
- Baroda BNP Paribas AMC
- Union KBC AMC
These companies have solid business foundations and could benefit from market listings.
SBI Stock Performance and Market Outlook
Despite the strong position of its subsidiaries, SBI’s stock has not performed well in the past year. On 3 July 2025, the share price fell by 0.31% to Rs.810. Over the last 12 months, SBI shares have given negative returns, but many analysts still believe the stock may see upside in the coming quarters.
