The State Bank of India building in Kolkata. (Photographer: Brent Lewin/Bloomberg)

PremjiInvest, Axis AMC Pick 4% In SBI General

State Bank of India Ltd. has decided to offload 4 percent of its stake in its general insurance arm for Rs 482 crore to an alternative investment fund promoted by Axis asset management company and PremjiInvest, the investment arm of Wipro Ltd. chairman Azim Premji. The deal values SBI General Insurance at over Rs 12,000 crore, SBI said on Wednesday.

Axis New Opportunities AIF-I represented through its investment manager Axis AMC and PI Opportunities Fund-I, an AIF floated by PremjiInvest, will purchase 1.65 percent and 2.35 percent stake, respectively from SBI, the bank said in a statement after a board meeting. The proposed transaction values SBI General Insurance at over Rs 12,000 crore.

"State Bank welcomes Axis New Opportunities AIF and PremjiInvest as our incoming partners in SBI General Insurance. We shall continue to extend our support and are excited about SBI GI's bright journey ahead," SBI Chairman Rajnish Kumar said.

On completion of the transaction, SBI will hold 70 percent stake in SBI General Insurance, while its joint venture partner IAG International will hold 26 percent.

The bank said the transaction will be completed after necessary regulatory approvals.

Also read: SBI General Insurance Expects To Wipe Out Losses In FY19