SBI chairman setty sends a strict message to top buyer at subsidiaries

Copyright © HT Digital Streams Limit all rights reserved. Shayan Ghosh 4 min read 24 Aug 2025, 09:34 IST State Bank of India Chairman Challa Sreenivasulu Setty. (PTI) Summary SBI has informed the subsidiaries that since their salaries measure according to industry standards, they must perform to justify it. But why this renewed pressure on performance? This is why Mumbai: State Bank of India asked its subsidiaries to act as part of the chairman CS Setty’s strict message that underperformance will not be tolerated, according to a person who is aware of the matter. Setty, who took over from Dinesh Khara as chairman of India’s biggest lineage a year ago, informed the subsidiaries that since the salaries, especially of the top buyer, have been marked according to industry standards, they must perform to justify it. “There is a message from above that performance is key and that the benchmarks are the peers in the private sector and the broader industry to which each of the subsidiaries belongs,” the person quoted earlier said on condition of anonymity. SBI has 18 subsidiaries in India, of which two – the life insurance company and its credit card business – are listed. The performance assessment begins with two of the seven frontline subsidiaries. The person quoted earlier said that the state-run bank wants to start this exercise on SBI card and SBI caps, and then move on to insurance and other subsidiaries. SBI card does not have a comparable counterpart traded in public, and SBI Caps are unlisted. The recent exits on SBI Capital Markets were the result of this approach, the person said. Mint reported in April that SBI’s investment banking and project advisory arm underwent a restructuring exercise, which led to exits of at least three senior managers. “SBI is justified to want more of its subsidiaries,” said Ashutosh Mishra, head of institutional stock research, Ashika stockbrokers. “They use the SBI brand and the reach of distributing their products, and it’s just fair that they give measurable returns to the bank.” Inquiries by e -mail to SBI, SBI Caps, SBI Card and SBI General insurance remained unanswered. A spokesman for SBI Life Insurance said it did not comment on speculation. The pressure on better performance coincides with a government that uses the banks in the public sector, and they ask to earn their interests in subsidiaries. As a precursor, banks must manage and improve professional decision making and bring greater operational efficiency to their subsidiaries, the news agency Pti reported on June 29, citing unnamed sources. Look for leadership although SBI has shown strong achievements and is higher than its closest counterpart of state-owned by total loan bank of Baroda is still lenders in the private sector. SBI traded 1.5 times its book value in FY25, while Bank of Baroda, HDFC Bank and ICICI Bank traded at one time, 3 times and 3.3 times, according to Motilal Oswal Financial Services. After the bank’s results were announced on August 8 on August 8, Setty told reporters that the bank “will continue to nurture these subsidiaries and maintain leadership positions in their respective companies.” Setty said on August 11 that he was “looking seriously” at the list of its general insurance and asset management companies, reports the Hindu businesses. Since being named chairman, Setty has insisted to achieve more matters and improve performance, another person, who also spoke on condition of anonymity, said. Follow -up of the first person said that succession planning at certain frontline subsidiaries should be more reflection on preparing the following leadership to take over if necessary. It’s not just about performance, as some of these subsidiaries exceed the market in growth, he said. “The bank noted that some departments and vertical heads have stayed for years without properly creating a pipeline of talent to get on the ladder,” the first person said. Subsidiary employees must be rotated within these businesses, so they get exposure to different business functions. ‘While those like the insurance subsidiaries are doing much better than peers, some have underperformed the market. For example, the SBI card, the second largest by the number of cards and the third largest by the customer’s spending in FY25, has a higher credit cost. Terms and write -offs as a percentage of assets. In the advice, Mint probably led to the restructuring. 9.6% and the expectation of a quick turnaround. Another rally, all in the recurring hope that the next term will somehow offer an alternative reality. “Catch all the industry news, bank news and updates on live currency. Download the Mint News app to get daily market updates. More topics #sbi read next story