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Informist, Wednesday, Oct. 29, 2025

 

--SBI Setty: To discuss with RBI on guardrails in merger financing draft norms 

--CONTEXT: SBI Chairman Setty's comments at Business Standard event 

--SBI Setty: Want govt to pay more attention to PSU banks' pay structure 

--SBI Setty: To definitely list SBI MF, SBI General Insurance; no timeline yet 

 

MUMBAI – There is a need to further discuss with the Reserve Bank of India the guardrails in the newly drafted merger and acquisition financing regulations, C.S. Setty, chairman of State Bank of India, said while speaking at the BS BFSI Summit here on Wednesday. "There are guardrails, the draft guidelines also have put in some guardrails. Obviously, we will be further negotiating with the RBI that what kind of fine-tuning can be done, in the M&A financing," Setty said.

 

In its last monetary policy review, the RBI had proposed a review of capital market exposure guidelines for banks. "There has been significant growth and development in the capital market structure, along with strengthening of the banking system in recent years," a statement from the RBI said. The review proposes to provide an enabling framework for banks to finance acquisitions by Indian corporates.

 

Setty also said that the government should look into the pay structure of public sector banks. "It is because of the pay structures and incentive structures, which need further attention from the government if they are really serious about bringing the private structure here," Setty said. "So, if government really wants to attract private talent, obviously, this structure has to be looked at."

 

The chairman of the largest bank in the country also spoke about the potential listing of two of SBI subsidiaries – SBI Mutual Fund and SBI General Insurance. "...these two subsidiaries definitely will be listed. Timing is something which I cannot take the guess, but these are good entities," Setty said. "These two companies do not require capital at this juncture, but we will definitely be accessing the market on these two subsidiaries, particularly to create an opportunity for general shareholders to come into these very, very valuable subsidiaries of SBI," he said.  End

 

Reported by Kabir Sharma and Krity Ambey

Edited by Avishek Dutta

 

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