State Bank of India, country's largest lender, has got approval from insurance regulatory IRDA to venture into non-life insurance.
SBI has collaborated with Australia-based Insurance Australia Group (IAG) to form SBI general insurance.
SBI General Insurance is a 74-26 joint venture in which SBI holds 74 per cent and IAG International Pty Ltd, a subsidiary of Insurance Australia Group holds 26 per cent.IAG has paid Rs 542.10 crore to pick up the stake in SBI General Insurance.
IRDA revealed that the R3 approval, final approval for starting an insurance company, had been granted to SBI.
Following this, the total number of general insurers registered with IRDA has gone up to 22.
SBI life, a joint venture between SBI and BNP Paribas assurance has been very successful.
SBI enjoys the largest branch network in the country. The number of branches of SBI and its associates is close to 16000. SBI general Insurance would be able to leverage that.