French bank BNP Paribas' insurance subsidiary BNP Paribas Cardif is reportedly planning to expand in the Indian insurance market by increasing its stake in SBI Life Insurance.
The company is in plans to acquire 10% stake from its joint venture (JV) partner State Bank of India (SBI).
The deal value will be finalized by December, and is expected to be completed by March 2016, reported The Hindu.
Once the deal concludes, BNP Paribas Cardiff will have 36% interest in the JV, while SBI will own the remaining 64% stake.
SBI Life Insurance managing director and CEO Arijit Basu was quoted by the The Hindu as saying: "The discussion (between the promoters) began in April and now the valuation process is underway."
The move comes after the Indian Government amended the investment laws for insurance, allowing foreign insurers to increase their stake in local joint ventures to 49% from the earlier 26%.
SBI is also divesting a part of its stake in general insurance joint venture, SBI General Insurance, from 76% to 51%. JV partner Insurance Australia Group (IAG) will raise its ownership from 26% to 49%.
SBI chairperson Arundhati Bhattacharya previously said: ""IAG has given a call for exercising their entire option of 49 per cent. Dial-up has not happened but valuation is going on."
Image: The deal is likely to be finalized in December. Photo: courtesy of Vichaya Kiatying-Angsulee / FreeDigitalPhotos.net.