Securities and Exchange Board of India has registered Sberbank as a foreign portfolio investor. About it reported Indian publication Business Standard with reference to the regulator.
Sberbank became the first Russian bank to receive such status in India. The local regulator has issued a Category I FPI license to the financial institution, which is only available to government-owned or government-linked foreign investors – mainly banks, independent wealth funds, investment and pension funds, and asset management companies. The license gives the bank tax benefits in India, but at the same time introduces strict rules for disclosing beneficial ownership.
The price of Sberbank shares decreased slightly due to the news. Ordinary shares of the company (JSC) by 11.32 Moscow time fell in price by 0.05% to 268 rubles, compared with the price at the close of the main trading session the day before. The cost of preferred shares (AP) at this time decreased by 0.1% to RUB 267.77. The Moscow Exchange index amounted to 3244.29 points (+0.29%). Since the beginning of 2023, quotes of JSC and AP banks have increased by 89.8%, the benchmark – by 50.6%.
Together with Sberbank, two more companies and two investors from Russia received the status of foreign portfolio investor in India. These are Management Company Pervaya, Alfa Capital Management, Igor Noskov and Vesvolod Rozanov, the publication clarified.
Since 2011, Sberbank branches have been operating in India, which are key counterparties in bilateral trade between Russian and Indian companies. The Russian credit institution received approval from the Reserve Bank to conduct business in the country in May 2010. In June, the bank launched money transfers to India for individuals.
In the first quarter of 2023 Sberbank received a profit close to the record for the quarter in the amount of 357.2 billion rubles. If the bank’s business develops along the same trajectory, then Sberbank can earn more than 1.3–1.4 trillion rubles. for 2023, noted earlier the head of the credit organization German Gref. According to his forecast, the size of the company’s dividends may return to pre-crisis levels, but the result will depend on the situation in the economy.