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SBI Divests Stake in MF Arm

State Bank of India has inked a deal to sell 37 per cent of its holding in its mutual fund arm, SBI Funds management Private Limited, to Societe General Asset management for an amount around $35 million. Post-divestment, SBI's stake in the mutual fund arm will come down to 63 per cent.

Societe General asset management is the asset management arm of the International Financial Conglomerate Societe General Group, having assets under management of Euro 252 billion worldwide and operates in 20 countries. On the other hand, SBI Funds management has total assets under management of around Rs 5,600 crore.

While the memorandum of understanding has been duly signed by both the parties, the final agreement is subject to regulatory approvals.