London Stock Exchange welcomes State Bank of India on the launch of FTSE SBI Bond Index Series
State Bank of India (SBI) is the largest commercial bank in India with a network of over 24,000 branches spread across the length and breadth of India and is currently ranked among the top 50 Banks in the world. It has a 211-year-old history in the Indian Banking Industry with an overseas network of 206 foreign offices spread across 35 countries, with the objective of serving the growth aspirations of Indian Corporate and Individuals, globally as well as domestically. This network, along with correspondent banking relationship with more than 402 banks and 24 Exchange companies tie ups across all continents, goes into making SBI a bank with global outreach. The Bank has 6 Foreign Banking Subsidiaries, 11 Non-Banking Subsidiaries and 7 Joint Ventures.
State Bank of India and FTSE Russell, the global index and data provider have launched the FTSE SBI Bond Index Series. The Index Series gives market participants from India, the UK and internationally the tools they need to analyse India’s bond market.
In November 2015, during the visit of Indian Prime Minister, Narendra Modi to the UK, a letter of intent was signed between State Bank of India and FTSE TMX Global Debt Capital Markets to develop in partnership, a new index tracking Indian fixed income securities. The launch of this innovative index series demonstrates significant progress in the development of India’s bond market, a priority of the India UK Financial Partnership (IUKFP), launched by the Indian Finance Minister and UK Chancellor of the Exchequer.
The first Index in this series, FTSE SBI Indian Government Bond index is a set of benchmarks for the Indian Sovereign Bond Fixed Income markets. They are transparent indices and are designed to be replicable with individual security holdings and prices disclosed electronically at the end of the day. The indices will serve as the reference for numerous financial instruments such as Exchange Traded Funds (ETFs), structured products, bond funds and index certificates. The Index Series is designed to reflect the performance of Indian fixed income securities issued in Indian Rupees (INR), in India, by the Indian Government.
At the event to celebrate the launch of the Index, Mrs. Arundhati Bhattacharya, Chairman State Bank of India said:
"State Bank of India (SBI), India’s largest Commercial Bank, has been at the forefront of development of Financial markets in India. We have teamed up with FTSE Russell to launch the FTSE SBI Bond Index Series. This Index series will act as a key benchmark for Indian debt for foreign investors looking to invest in Indian debt market and will significantly contribute to development and broadening of the Indian Bond Market."
Introduction of such products would take Indian Debt Markets to Global Investors in a transparent and liquid manner. To achieve our objectives, SBI is engaging with its subsidiaries, SBI Capital Markets Ltd and SBI Funds Management Pvt. Ltd, and Global partners to launch ETFs in India, UK and European markets, in consultation with FTSE TMX.
SBI Capital Markets Ltd. (SBICAP) is India’s largest domestic Investment Bank, offering the entire gamut of investment banking and corporate advisory services. SBI Funds Management Pvt. Ltd, a Joint Venture between SBI and AMUNDI (France), is currently the largest ETF provider in India with a market share of more than 53%. SBIMF has been a pioneer in the ETF space and has one of the largest product range with strategies across equity, gold and domestic Fixed Income assets classes.