India's largest bank SBI today said it will offload up to 5 per cent 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 per cent 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 today 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 per cent 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 per cent and a total market share of 5.1 per cent 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 per cent from yesterday.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)