A clearer picture on the outcome of the ongoing discussions between the State Bank of India (SBI) and BNP Paribas Cardiff for hiking the overseas partner’s stake in the life insurance joint venture (JV) is likely to emerge by end March this year, Arijit Basu, Managing Director and CEO of SBI Life said.
Talks have been going on since 2015 for increasing BNP Paribas Cardiff stake in the JV, now at 26 per cent, by 10 per cent.
The stake hike has become possible after the passage of the legislation relaxing the earlier 26 per cent cap on Foreign Direct Investment (FDI) in insurance sector.
To a question on the possible listing of the company, he said this could only follow the stake sale.
“It is not seen to be happening before 2017-18 at the earliest. “There is no need to go to market for capital just now,” he observed.
Paid-up capital“The life-insurer has a paid-up capital of Rs.1,000 crore.
Mr. Basu said that valuation of SBI Life is now in process and both the partners have appointed actuaries for the purpose.
