Under the agreement, SBI would hold a 74 per cent stake in the new entity that would be set up for providing the business, while the Australian partner would hold the remaining, SBI said in a filing to the Bombay Stock Exchange.
In May this year, both parties had said they would enter into an agreement to form a new company for the proposed insurance business. However, the JV is subject to regulatory approvals, it added.
Last week, the state-run lender had received approval from the Reserve Bank of India for a JV with European financial services group Societe Generale for offering custodial and related services in the country.
Under the agreement SBI would hold 65 per cent equity in the new JV company, while the remaining 35 per cent would be held by Societe Generale Securities Services.
State-run insurers -- United India Insurance, New India Assurance, Oriental Insurance and National Insurance -- are the major players in the general insurance business in the country.
However, private sector insurers, including Bajaj Allianz, ICICI Lombard, IFFCO-Tokio General Insurance and Reliance General Insurance, have significantly raised their shares. Shares of SBI were trading at Rs 1,194 on the BSE, up 0.92 per cent in the morning trade.
