Country's largest lender,State Bank of India has bought back its nearly 13.84 per cent stake in its investment banking arm-SBI Capital Markets-from Asian Development Bank,for an undisclosed amount. This would make SBI Caps a wholly-owned subsidiary of State Bank. ADB,which bought the stake in 1997,decided to exit as it wanted to invest in 'other development activities and ventures' in the country and felt that it has achieved its initial goal of 'giving a fillip' to the local firm,SBI Cap Managing Director and CEO,S Vishvanathan,said. "ADB sold its stake to State Bank in March as it wanted to invest in other development activities. The deal has made SBI Cap as the wholly-owned subsidiary of State Bank," Visvanathan said here,but declined to divulge the valuation amount. According to a senior official with the State Bank Group,SBI paid a hefty premium to ADB's stake and decided to buy-back the shares as ADB's holding did have 'hardly any value' in the company any longer as the agency had achieved its aim in the investment arm. Asked whether SBI plans to sell the stake to another partner,the official said SBI is unlikely to look for another partner in the near future and is likely to keep the entity as the wholly-owned subsidiary of the bank.
