'SBI to form a holding co for SBI Life, SBI MF'

Kolkata, Aug 2: In a bid bring more synergy into its businesses, public sector banking major State Bank of India will form a holding company within the next two to three months.

SBI Life, the insurance arm of State Bank and SBI Mutual Fund, would come under this holding company.

Speaking to mediapersons on the sidelines of the Banking Conclave organised by FICCI, SBI CMD O P Bhatt said the holding company would have a valuation of US to 7 billion.

''The holding company's name is yet to be decided,'' he said, adding that the public sector bank aims to list the holding company.

Elaborating the reasons behind creating a holding company, the SBI chief said, ''It will create synergy among the retail related businesses, increase the valuation of SBI and help raise capital.'' The bank would offload 5 per cent stake of this proposed holding company to the strategic investors, he said.

UNI