State Bank of India (SBI) has announced plans to reduce stake in its general insurance joint venture, SBI General Insurance.
The state-owned bank intends to decrease its stake from 76% to 51%, in a bid to support its existing partner Insurance Australia Group (IAG) to increase its interest from 26% to 49%.
The decision was based on the amendment of insurance laws in the country, allowing the foreign insurers to increase their stake in local joint ventures to 49% from the earlier 26%.
In addition, the bank is planning to decrease the stake in its life insurance venture and is in talks with insurance joint venture partners regarding the sale of interest.
BNP Paribas Cardif holds 26% stake in SBI Life Insurance, while the remaining interest is owned by the bank.