The lender’s turnaround efforts gathered pace after the nation’s largest insurer LIC bought a controlling stake in the bank from PM Modi’s government.
The deal would be valued at about 34 billion rupees ($480 million) at the top of the price range.
KKR already operates two local non-bank financiers – KKR India Financial Services Pvt and KKR India Asset Finance Pvt – and also manages credit funds in India.
Investcorp Bank BSC plans to provide structured lending to developers faced with borrowing constraints.
SBI’s sale will help bolster its capital buffers as it attempts to grow loans at a faster pace.
The US private-equity firm is considering buying Punjab National Bank’s shares in PNB Housing, which would give it a controlling stake.
A confluence of factors helped India draw more inbound investments than China for only the second time in a decade. Foreign acquirers struck a record $39 billion of acquisitions in India this year.
KKR’s two Indian credit units may spend as much as 20 billion rupees ($270 million) combined to purchase portfolios from local NBFCs.
Uday Kotak is seeking to meet a year-end deadline to reduce his stake in Kotak Mahindra Bank below 20 per cent. A recent preference share proposal was shot down by the Reserve Bank of India.
Adani Power will take over about 38 billion rupees ($543 million) of loans out of a total of 58 billion rupees that GMR Chhattisgarh Energy owes.