SBI to sell up to 4% stake in general insurance arm
As part of its non-core asset sale, the 4 percent stake sale could unlock approximately Rs 500 crore worth of capital.
SBI General is a joint venture between SBI and Australia's IAG where SBI holds 74 percent stake and IAG holds 26 percent.
In May this year, SBI’s MD for Risk, IT & Subsidiaries Dinesh Kumar Khara had said the lender will sell 3-5 percent stake in its general insurance subsidiary SBI General Insurance this financial year.
SBI General, a private insurance company, had posted nearly 160 percent increase in its FY18 net profit at Rs 396 crore because of a one-time gain of Rs 131 crore.
After posting its maiden underwriting profit in FY18, SBI General’s MD and CEO Pushan Mahapatra told Moneycontrol that the insurer is looking to bring out its public issue in FY20.
SBI is the promoter of two insurance companies, SBI Life Insurance and SBI General Insurance. SBI Life was listed on the stock exchanges in FY18.