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State Bank of India plans stake sales in 3 units

State Bank of India plans to divest stakes in units SBI General Insurance Co. Ltd., SBI Card and SBI Capital Markets Ltd. over the next two years, Press Trust of India reported May 22, citing Chairman Rajnish Kumar.

For SBI Capital Markets, the Indian lender plans to bring in a partner and divest about a 24% to 49% stake in the unit, Kumar said. It also aims to merge the project advisory business of SBI Capital Markets with the parent bank to remove business duplication. The aim to is to make SBI Capital Markets a pure investment bank, the chairman added.

Meanwhile, the bank is also considering selling a 3% to 5% stake in SBI General Insurance in 2018 following its IPO in 2017, according to Dinesh Khara, managing director for risk, IT and subsidiaries.

In addition, the lender plans to list SBI Card, its credit card company, in fiscal 2020. At present, State Bank of India owns a 74% stake in SBI Card after GE Capital Group's entire 26% stake was sold to Carlyle Group LP.