MUMBAI: State Bank of India’s joint venture partners in life and #general insurance business have asked the country’s largest bank to increase their stake following changes in Indian laws that enabled foreign partners to increase stake up to 49%. This will be the first such increase in stake by foreign partners.
In the #life insurance space, SBI has BNP Paribas Cardiff as a partner. BNP Paribas, which owns 26% in the life #insurance venture, has asked SBI to increase it to 36%. BNP Paribas Cardiff has a right to increase its shareholding up to 49%. “Both the sides will be doing their own independent valuation of the stakes,’’ said Arundhati Bhattacharya, chairman of SBI.
“In case of a variance in the value by more than 10%, it will be referred for valuation to a third party.’’
Likewise, in general insurance too SBI’s partner #Insurance Australia Group (IAG) stated its intention to increase its stake to 49%. IAG sent a letter to the State Bank of India sharing its intention. After the changes in stake-holdings SBI will continue to own majority shareholding in the respective insurance companies.
Curated From : SBI’s Insurance Biz Partners to Increase Stake