‘Focus will be on growing in B30 locations’: SBI Chairman

Post the listing of SBI Funds, only two large subsidiaries of SBI remain unlisted — SBI General Insurance and SBI Pension Funds. When can we expect them to be listed?

Setty: Currently, with SBI Funds Management, we have three subsidiaries listed. We will certainly look for opportunities to list the other subsidiaries as they evolve and mature and reach a stage where listing makes sense.

We have seen foreign promoters look at value unlocking after the listing of HDFC AMC and ICICI Prudential AMC. What is Amundi’s stance two-three years down the line?

Calcoen: SBI Funds Management is a reflection of a very strong partnership between SBI and Amundi. It has been a long journey for us, with a partnership spanning more than 20 years. But I want to say that this is only the beginning, and we are very happy shareholders of SBI Funds Management. We will continue to build this partnership, grow together and remain alongside SBI for a very long time.

How did the association with SBI help build the premium that the listing brought? What was Amundi’s role in taking the issue forward?

Setty: We wanted to bring this investment opportunity to a large number of retail investors. Value creation is not only about the performance of the schemes managed by the AMC but also the fact that it has the backing of the largest parent company. The company also brings the best governance practices of SBI and Amundi.

In terms of value creation for our subsidiaries, our investment in 18 subsidiaries is about Rs 6,000 crore, which is currently valued at Rs 4 lakh crore. This is the value creation that SBI has delivered, and in the process, we have also created institutions of enduring value.

Calcoen: We brought our experience of being listed in the public markets. We also played a role in bringing international investors into the company during the roadshows.

As this issue was entirely an offer for sale, where can shareholders see value creation in the coming years? Where do you see AUM growth coming from over the next 3-5 years?

Mishra: Only 100 million Indians out of a population of 1.4 billion invest in mutual funds, which gives us a very long runway for growth.

Oliver: If we look at mutual fund assets as a percentage of GDP, the figure is 18% in India, compared with more than 80% in France and more than 120% in the US. This provides a long runway for growth for the industry and SBI Funds.

What are the biggest challenges for SBI Funds over the next two years?

Setty: Our focus is on strengthening our leadership in B30 locations, which is both our biggest challenge and our biggest opportunity.

Tewari: We have to balance the profitability of the fund house with maximising our reach while developing segments of the market that currently have low participation. Another challenge is finding talent to scale up. Similar to banking, we aim to develop talent within the industry as well. 

As the majority shareholder, do you see further value unlocking through additional dilution in the future?

Setty: At this moment, we are not looking at any further dilution of our stake.

What is next for SBI Funds and the SBI-Amundi partnership following the listing?

Calcoen: We will continue on this journey of growth. There are tremendous opportunities arising from the broadening of the retail investor base, particularly in products linked to retirement funds and passive funds. There is also scope for greater investment from international investors. We will continue to support the management of SBI in any way we can.

Mishra: Our aim is to be the fund manager for every Indian. We want to democratise investment by bringing more investors into the market, enhancing our digital delivery solutions, providing value to investors and growing our presence in passive, alternative and international categories.