SBI Mutual Fund starts looking for merchant bankers, other service providers for its upcoming IPO; check details

"We are very seriously working on that, and in this timeline we should hit the market...we have started the process of identifying the merchant bankers and other service providers," Setty, who is also chairman of SBIFML, said.

SBIFML is a joint venture between State Bank of India and Paris-based Amundi, with 61.98% and 36.40% stakes, respectively. The fund house managed assets of around ₹12 lakh crore as of September 2025.

The company's two promoters plan to sell a combined 10% stake through the public offering.

Last month, SBI approved the offloading of 32,060,000 equity shares, being equivalent to 6.3007% of the total equity capital of SBIFML through IPO.

Amundi India Holding, the other promoter of SBIFML, will divest 18,830,000 equity shares, being equivalent to 3.7006% of the total equity capital of SBIFML, with a total of 10.0013% stake comprising 50,890,000 shares to be listed.

SBIFML is the largest asset management company in the country with a market share of 15.55%, managing Quarterly Average Assets Under Management (QAAUM for Q2 FY2026) of ₹11.99 lakh crore under various schemes of SBI Mutual Funds and AUM of ₹16.32 lakh crore under alternate funds as of September 30, 2025.

SBI Mutual Fund was established in 1987 with SBI as the sponsor and was the first non-UTI mutual fund in India.

In 1992, SBI Funds Management Limited was incorporated as a wholly owned subsidiary of SBI as Investment Manager for SBI Mutual Funds to provide investment solutions across different asset classes.

The total income of SBI Mutual Fund was ₹4,230.92 crore in FY25, 0.64% of the total income of SBI Group.

Setty, the chairman of the country's biggest lender, had expressed confidence in achieving its 3% net interest margin guidance despite the RBI's 0.25% repo rate cut in the December policy.

Last week, the Reserve Bank of India (RBI) lowered the repurchase, or repo rate, by 25 basis points to 5.25% and retained a neutral stance, which gave room for further rate cuts. The rate cut came after a gap of six months with a view to further bolster growth, which hit a six-quarter high of 8.2% in Q2 of FY26.

The SBI chairman also said the bank may not need equity capital to drive credit growth and maintain a capital adequacy ratio of 15% over 5-6 years.