SBI shortlists three foreign companies for JV in Insurance

Bhubaneswar,Oct 01 (UNI) The State Bank of India(SBI)has shortlisted three foreign companies from Australia, Europe and America for setting up a joint venture to enter general insurance business, Bank chairman Om Prakash Bhatt said.

In an interaction with newsmen here, Mr Bhatt said the name of the partners in the insurance venture would be announced in the next couple of months but made it clear that SBI will be the major promoter in the JVC with at least 75 per cent stake in the business.

He said SBI required funds to strengthen global operation to facilitate the acquisition and merger operations by Indian companies and NRIs abroad.

Mr Bhatt said the bank has funded nearly Rs 1 billion to the indian companies in the first quarter of the current year in a bid to strengthen its global operation.

The SBI chairman said the bank required nearly about Rs 10,000 crore during the fiscal to comply with the Basel II norms and the international accounting practice adding that the modalities for raising the fund is being discussed with the Centre.

On the merger of the seven associate banks of SBI, Mr Bhatt said steps had already been taken up with the SBI Saurastra in the first phase as it is not listed in the stock and cent per cent owned by the bank.

Mr Bhatt expected that the there would be a downward revision of interest rate by 0.25 basis in the new credit policy of the Reserve Bank of India.

UNI