Mumbai: State Bank of India, the country’s top lender, said on Tuesday, 13 May, it has signed a memorandum of understanding with Insurance Australia Group for general insurance.
Both firms will finalize an agreement and approach regulators for approvals, they said in a joint statement, without specifying financial details.
SBI will hold 74% in the venture, with IAG holding the remaining 26%, the maximum allowed under Indian law.
A general insurance joint venture “is a key element of SBI’s strategy to pursue emerging, high growth opportunities,” it said.
“SBI hopes to commence business in the current financial year and aspires to be amongst the top three players in the general insurance space in a period of about 10 years,” it said.
State-run SBI has a venture with Cardiff, a unit of BNP Paribas, for life insurance.