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SBI looking at reducing non-core investments

The government has advised all state-run banks to sell down their non-core assets to unlock capital for funding core business.

, ET Bureau|
Last Updated: May 19, 2017, 07.08 PM IST|Original: May 19, 2017, 07.05 PM IST
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Indian insurance law allows foreign companies to hold up to 49% stake.
Indian insurance law allows foreign companies to hold up to 49% stake.
Kolkata: State Bank of India said it looks to reduce holding in its general insurance joint venture as part of the plan to dilute non-core investment.

The government has advised all state-run banks to sell down their non-core assets to unlock capital for funding core business.

SBI chairman Arundhati Bhattacharya said that the bank has initiated talks with the 26% joint venture partner Insurance Australia Group to reduce its stake from 74%.

Indian insurance law allows foreign companies to hold up to 49% stake.

Bhattacharya said that the bank would also look to dilute its 18.3% holding in UTI Asset Management Co if the entity goes for public listing.

"We may sell shares in some strategic investments," she said.

SBI has also in the process of selling 8% in the life insurance venture as the company is preparing to get listed by September. Earlier, it sold 4% to other investors including KKR and Temasek Holdings.
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