SBI to dilute 23 percent stake in SBI General Insurance

Posted on 26th Mar 2015 05:20 pm by mohit kumar

Chennai, March 26 (IANS) India's largest mortgage lender State Bank of India (SBI) has decided to lower its stakes in its general insurance joint venture to 51 percent and has decided to begin the process, the bank said on Thursday.

In a regulatory filing in BSE the bank said its executive committee of the central board (ECCB) on March 25 decided to initiate the necessary action as per the joint venture agreement for dilution of its stake in SBI General Insurance from 74 percent to 51 percent.

SBI said the other partner, Insurance Australia Group (IAG) of Australia would increase its holding in the general insurance company from 26 percent to 49 percent.

According to SBI, the process for diluting its holding in favour of IAG would begin as per the joint venture agreement which includes the appointment of valuer to estimate the enterprise value and the price discovery.

The bank's decision comes in the wake of Indian parliament passing amending the insurance laws to allow foreign direct investment (FDI) up to 49 percent subject to the condition that the management control remains with Indians.

Along with the stake change the insurer would most likely undergo a name change to signify the revised shareholding pattern.

SBI General is hoping to close this fiscal with a premium of Rs.1,600 crore and increase that by 50 percent next fiscal.

SBI also has a 74:26 life insurance joint venture with BNP Paribas Cardif called SBI Life Insurance Company Ltd.

However the bank has not said anything on possible changes in the shareholding pattern.

Other news

Russia US Sanctions: Russia's counterattack, sanctions imposed on 61 US citizens

Russia has imposed sanctions on 61 US citizens. This was announced by the Ministry of Foreign Aff

Bluntly: High Court said - Twitter has to follow the new IT rules

After all the protests, the microblogging site Twitter has agreed to several new guidelines of th

Rahul Gandhi: Rahul Gandhi suddenly arrived at the mechanic's shop, and started repairing the bike with a screwdriver in his hand.

Senior Congress leader Rahul Gandhi visited a workshop of motorcycle mechanics in Delhi's Karol B

Gujarat Earthquake: Two more minor tremors of earthquake in Amreli, Gujarat, for the third time in two days

Two minor tremors of earthquake were felt in Gujarat's Amreli district in the last 24 hours. This

Hardik's next mission T20 World Cup: Said - I will give everything to become a world champion, I identify with Team India

The 15th season of IPL ended on Sunday. In the final match, the Gujarat team performed brilliantl

S Jaishankar's world bluntly: India does not need advice from anyone, we will talk to the world on our terms

External Affairs Minister S Jaishankar said in the ongoing Raisina Dialogue in New Delhi on Wedne

The Family Man 2: Fans of Samantha Akkineni, who were crazy as soon as the trailer was announced, said - 'Raazi' storm is coming

In the second season of Manoj Bajpayee starrer web series The Family Man, a popular actor of Sout

Mumbai Rain Updates: IMD's red alert in Mumbai even today, schools closed in Thane and Palghar

Mumbai Weather: Heavy rains continue to wreak havoc in Mumbai. The India Meteorological Departmen

India-Pak final not held in Asia Cup till date: Tournament organized 14 times in 38 years, Team India is in the forefront with 7 titles

The countdown for the Asia Cup has started. There are only 13 days left. This tournament has alwa

Gurugram News: Intoxicants given as prasad in the fair, 40 people unconscious; condition of 25 people critical

A shocking case has come to light in Gurugram, adjacent to the country's capital Delhi, in a fair