BNP Paribas Cardif set to increase SBI stake by 10 per cent
BNP Cardif will increase its stake by buying SBI's shares in the life insurance business and there will be no fresh capital infusion.
SBI has partnered with BNP Paribas Cardif to form a life insurance subsidiary - SBI Life Insurance -- in which SBI holds 74 per cent stake.
"They (BNP Paribas Cardif) are interested in dialling up 10 per cent. They have the right to give a call which they have exercised," SBI chairperson Arundhati Bhattacharya said.
The company can also go for an IPO later. BNP Cardif will increase its stake by buying SBI's shares in the life insurance business and there will be no fresh capital infusion. "It will be a sale of our equity stake. We will encash our stake," Bhattacharya said.
The valuation process will now begin and the entire process will be over in the next three to four months.
Bhattacharya further said Insurance Australia Group (IAG), with which the bank has partnered for general insurance business, will be raising its stake to 49 per cent.
In SBI General Insurance, SBI owns 74 per cent while Insurance Australia Group holds the remaining 26 per cent.
"IAG has given a call for exercising their entire option of 49 per cent. Dial-up has not happened but valuation is going on," Bhattacharya said, adding that IAG will also increase stake by buying SBI's stake.
"Each of us have a valuer and depending upon whether they are close enough...if they are not within 10 per cent of each other then we will go for a third valuer," she said.
IAG will increase its stake in SBI General Insurance in this fiscal, she added.