SBI Mutual Fund Operates Independently of SBI Branches: CEO Debasish Mishra

SBI Mutual Fund has said it is not dependent on the branch network of its parent, State Bank of India (SBI), for business and has robust safeguards in place to prevent the mis-selling of investment products. Managing Director and Chief Executive Officer Debasish Mishra said only around Rs 2 lakh crore of the fund house's nearly Rs 13 lakh crore in assets under management (AUM) originates through SBI's branches. His remarks come as the government has urged public sector banks to focus on their core banking activities.

Speaking about the fund house's distribution strategy, Mishra said SBI Mutual Fund has built a diversified network that extends well beyond its parent bank. He noted that the company operates through five to six major distribution channels and works with more than 1.3 lakh distributors across the country. In addition to SBI branches, the asset manager also distributes its products through several other banking partners, reducing reliance on any single channel for business growth.

Addressing concerns surrounding the sale of mutual fund products, Mishra said the company has established strict internal checks before any investment offering reaches customers. He stated that all products undergo evaluation and approval by a dedicated product committee, ensuring compliance with regulatory standards and suitability for investors. According to Mishra, these internal processes significantly reduce the possibility of mis-selling and reinforce the company's commitment to responsible investment practices.

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The comments also come ahead of SBI Mutual Fund's proposed initial public offering (IPO), which is expected to alter the shareholding pattern of the country's largest asset management company. Mishra said State Bank of India plans to divest a 6.3% stake through the public issue, while its joint venture partner, French asset manager Amundi, will sell 3.7% of its holding as part of the offering.

Following the IPO, SBI's stake in SBI Mutual Fund is expected to decline to 55.46%, while Amundi's shareholding will reduce to 32.56%. The proposed listing is seen as a significant milestone for the asset management company as it seeks to strengthen its market presence while maintaining diversified distribution channels and investor protection measures. The IPO is also expected to attract strong market interest given SBI Mutual Fund's scale and leadership in India's rapidly expanding mutual fund industry.

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