Kolkata: SBI Life Insurance company, a joint venture of State Bank of India and French firm Cardif SA, will infuse Rs 200-250 crore by March this year, to meet its business requirements.
The fresh capital infusion would be made by March to meet its fund requirement in line with the business growth targets, SBI Life Insurance MD and CEO U.S. Roy told reporters on the sidelines of an insurance meet organised by the Indian Chamber of Commerce here today.
The current paid capital of the company is Rs600 crore and authorised capital is Rs 1,000 crore.
“We are looking at a growth of 100 to 150% in this fiscal and hope to touch a total premium income of Rs 6,500-7,000 crore in FY08 as compared to around 3,000 crore last fiscal,” Roy said.
Asked about plans for an IPO of the company, he said, “We are eligible for an IPO once we post profit in this year but it is not yet clear from the regulations weather it is mandatory.”
Roy said the company had already posted profit for the last two years and hoped to post profit in the current year also. “So, we are eligible for IPO. But, the regulations are not very clear if we have to make public offer within 10 years of our existence, which will be completed in 2008-09.”
He said the IPO would take place if regulatory framework demands and if given option, what SBI Life would do has not yet being decided.
He added the company was also waiting to hear from the Reserve Bank of India on regulations for a holding company which would bear an impact on such plans.