SBI enters general insurance biz through JV with IAG

Country's largest lender State Bank of India said on Monday that it
has entered into a joint venture with Insurance Australia Group (IAG)
for its foray into the general insurance business.

Under the JV agreement, SBI would hold a 74 per cent stake in the new
entity that would be set up for providing the business, while the
Australian partner would hold the remaining, SBI said in a filing to
the Bombay Stock Exchange.

In May this year, both parties had said they would enter into an
agreement to form a new company for the proposed insurance business.
However, the JV is subject to regulatory approvals, it added.

Last week, the state-run lender had received approval from the Reserve
Bank of India for a JV with European financial services group Societe
Generale for offering

custodial and related services in the country.

Under the agreement SBI would hold 65 per cent equity in the new JV
company, while the remaining 35 per cent would be held by Societe
Generale Securities Services.

State-run insurers -- United India Insurance, New India Assurance,
Oriental Insurance and National Insurance – are the major players in
the general insurance business in the country.

However, private sector insurers, including Bajaj Allianz, ICICI
Lombard, IFFCO-Tokio General Insurance and Reliance General Insurance,
have significantly raised their shares.


Shares of SBI were trading at Rs 1,194 on the BSE, up 0.92 per cent in
the morning trade.