State Bank of India is ardent to divest further stake in its foreign partner Insurance Australia Group, for which it has already hired consultancy PwC to carry out the valuation process for its general insurance joint venture.
SBI General Insurance’s foreign partner Insurance Australia Group (IAG) has roped in Deloitte for the purpose.
“Valuation for SBI General Insurance is being done by two separate firms. While State Bank has roped in PwC, Insurance Australia Group has appointed Deloitte for the purpose,” as per the report.
The move comes after the government in March passed the new insurance law that allows 49 percent foreign holding but with management control vested with the local partner. Already a number of foreign companies have agreed to increase their stakes in the ventures here.
State-run Bank of India too had said recently that it was looking at paring its stake in life insurance arm Star-Union Dai-ichi Life Insurance to 30 percent from the present 48 percent. Star Union Dai-ichi Life Insurance is a joint venture between Bank of India (48 percent), Union Bank of India (26 percent) and Dai-ichi Life Insurance (26 percent).