SBI To Divest 5% Stake In SBI Life To Non-Promoter Entity
SBI approved the divestment of stake at a board meeting on Friday.
India's largest bank State Bank of India on Friday said it will offload up to 5 percent stake in its life insurance joint venture – SBI Life Insurance – to a non-promoter entity.
SBI Life Insurance is a joint venture between State Bank of India and BNP Paribas Cardif. SBI owns 74 percent of the total capital and BNP Paribas Cardif the remaining 26 per cent. SBI Life has an authorised capital of Rs 2,000 crore and a paid-up capital of Rs 1,000 crore.
SBI informed BSE that its executive committee of the central board (ECCB) at its meeting held on Friday has approved the divestment of stake.
"Pursuant to the applicable provisions of the LODR regulations, we advise that the executive committee of the central board (ECCB) at its meeting held on October 14, 2016 has approved to dilute up to 5 percent stake of SBI in SBI Life to a non-promoter entity," the BSE filing said.
As per SBI Life's 2015-16 annual report, the company collected a total gross written premium (GWP) of Rs 15,825 crore, comprising Rs 7,107 crore new business premium and Rs 8,719 crore renewal premium.
It retained a private market share of 17.3 percent and a total market share of 5.1 percent for 2015-16.
BNP Paribas Cardif is the life, property and casualty insurance arm of BNP Paribas.
SBI's shares closed at Rs 251.9 apiece on BSE, up 0.88 percent from Thursday