Home / Business and Economy / SBI Eyes Full Control of Investec JV
SBI Eyes Full Control of Investec JV
18 Feb
Summary
- SBI considers increasing stake to 51% in Investec JV.
- Previous RBI rejection was due to stake below 51%.
- JV reported ₹119 crore profit on ₹453 crore revenue in FY25.
The State Bank of India (SBI) is contemplating a significant increase in its stake in its investment-banking joint venture with Investec India, with the aim of taking majority control. This strategic initiative seeks to enhance SBI's capabilities in deal-making and distribution during a period of robust activity in India's equity capital markets.
Previously, the Reserve Bank of India (RBI) had not approved SBI's attempt to raise its stake to 40%, adhering to a regulatory preference for either minority stakes (around 20%) or majority control (51%) for consolidated supervision. SBI currently holds approximately 20% in Investec Capital Services (India) Pvt Ltd through its subsidiary, SBI Capital Markets (SBI Caps), a stake acquired in 2020.
The joint venture, which offers services in private credit, mergers and acquisitions, and equity and debt capital markets, demonstrated strong financial performance. For the fiscal year 2025, it reported a net profit of ₹119 crore on revenues of ₹453 crore, a notable increase from the previous year. Analysts remain positive about the JV's prospects, with ratings reaffirmed at AAA.
