SBI to acquire 20% stake in SBI Pension Fund; Details here

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Bank of India (SBI), on Tuesday, announced that it is planning to acquire a 20% stake in SBI Pension Funds, which is held by SBI Capital Markets SBI currently holds a 60 percent stake in SBI Pension Funds. Through this latest transaction, the company is set to increase its stake to 80 percent, acquiring the additional shares for a sum of 229.52 crore. The remaining 20 percent stake in SBI Pension Funds is held by SBI Funds Management.

As of October 30, 2023, SBI Pension Funds boasts an Asset Under Management (AUM) of ₹3.83 lakh crore and a Profit After Tax (PAT) of ₹35.03 crore. In their regulatory statement, SBI noted 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. Furthermore, they emphasized that the transaction is being executed at an "arm's length basis," based on the valuation report from M/s Deloitte Touche Tohmatsu India.

The contemplated acquisition is being conducted through an arm's length approach, relying on the valuation report provided by Deloitte Touche Tohmatsu India, as disclosed in an exchange filing by the nation's largest lender. SBI aims to finalize the acquisition by December 15, having already secured approvals from the Reserve Bank of India and the Pension Fund Regulatory and Development Authority (PFRDA) for the proposed transaction. Established in 2007, SBI Pension Funds holds the designation of being the appointed pension fund manager entrusted with the responsibility of overseeing the pension corpus within the National Pension System.