New Delhi : Weeks after the passage of insurance legislation, State Bank of India decided to divest up to 10% stake in its life insurance arm SBI Life, giving the first right of refusal to foreign partner BNP Paribas Cardif of France, reports PTI.
“We are continuing discussion with Cardif as it has first right of refusal as per the agreement. Stake dilution process would progress only after getting clear signal from the foreign partner,” SBI Life Insurance Managing Director and CEO Arijit Basu told PTI. SBI Life Insurance is a 74:26 per cent joint venture between SBI and BNP Paribas Cardif of France. At present, SBI owns 74 per cent of the total capital and BNP Paribas Cardif has the remaining 26 per cent in the joint venture.
“Stake dilution may not take place this year. It is an enabling provision,” he said, adding that it may take place in the January-March quarter of next year subject to conditions.
Stake dilution by SBI will help the country’s largest bank in monetising its investment and provide growth capital for banking business.