This is part of SBI’s larger strategy to monetize its stake in non-related subsidiaries and associate companies which are not central to its core function of banking. SBI invited bids for selling 1% stake in the National Stock Exchange (NSE) numbering close to 50 lakh shares in the National Stock Exchange (NSE) as part of its capital raising exercise. SBI currently holds 5.19% stake in the NSE. This will be done through a competitive bidding process for which bids need to be submitted for a minimum lot of 10 lakh shares in the prescribed format on or before January 15. It may be recollected that in the year 2016 SBI had sold 5% stake in NSE to the Mauritius-based Veracity Investments for Rs 911 crore. This had then valued the NSE at over Rs.18,200 crore. In addition, the subsidiary of SBI, SBI Capital, also holds 4.33% stake in the exchange.

Not just SBI but other lenders are also look to monetize their stake in NSE. Earlier, IFCI had sold its entire 2.44% stake in NSE for Rs.806 crore, which values the exchange at closer to Rs.33,000 crore. This is part of a larger strategy for SBI to expand its war chest for the coming years. Besides the NSE stake dilution, SBI is also looking to raise funds from IPOs of UTI Mutual Fund and SBI Cards. This moves should be overall positive for SBI.