While there is more than one irritant that the bank and the insurer are trying to sort out, sources close to the development said the biggest roadblock is the rights that IAG will enjoy if the proposed venture gets a go-ahead from the SBI board. The issues are likely to be discussed at the board's meeting on Friday.
SBI General Insurance aims to achieve a 10 per cent market share among private and standalone health insurers within approximately five years, up from its current 7.17 per cent, said Naveen Chandra Jha, managing director and chief executive officer, SBI General Insurance.
Many other companies have expressed intent of diluting stakes.
"We hope to start general insurance operations before the end of the current fiscal. We already have got stage one approval from IRDA," SBI Chairman O P Bhatt told reporters in New Delhi.
Jio Platforms' initial public offering has garnered an overwhelming institutional demand of approximately Rs 2.5 lakh crore, significantly exceeding its Rs 8,110-crore anchor book, with global and domestic investors vying for a stake in the Reliance Industries subsidiary.
Indian insurance companies are bracing for reduced profitability in Q4FY26, primarily due to the rationalisation of GST on retail life and health policies, leading to a loss of input tax credit, coupled with volatility in equity markets impacting investment income.
The National Stock Exchange (NSE) has set its initial public offering (IPO) price band at Rs 1,700-1,785 per equity share, with the subscription period running from September 17 to September 21, aiming to raise up to Rs 22,569 crore.
The National Stock Exchange's (NSE) initial public offering (IPO) is expected to shrink in size to Rs 25,000-27,000 crore, down from an earlier estimate of Rs 30,000 crore, as some shareholders are reducing their offer for sale (OFS) stake.
The loss of input tax credit (ITC) following the rationalisation of the goods and services tax (GST) on individual life and health insurance from 18 per cent to nil is may weigh on the profits of life insurers in the third quarter (Q3) of 2025-26 (FY26).
The National Stock Exchange of India Ltd (NSE) has received regulatory approval from SEBI for its long-awaited Rs 30,000-crore initial public offering (IPO), positioning it to potentially become the country's largest-ever public issue.
Both the life and non-life insurance segment posted over 20 per cent premium growth in November for the first time in this financial year (FY26), supported by the reduction in goods and services tax (GST) on premiums from 18 per cent to zero and a favourable base effect.
'Regulations give a particular minimum amount of shares to be given in the OFS or IPO -- without which one cannot do the IPO.' 'We got that number on the day of filing of updated DRHP -- sufficient for us to go live with the IPO.'
The insurance industry is trying to get to grips with provisions in the proposed Insurance Amendment Bill, which gives additional powers to the Insurance Regulatory and Development Authority of India (Irdai), while there is ambiguity in the very definition of the insurance business, according to industry experts.
Firms in which IP is critical, such as pharma and research and knowledge-based organisations, were taking the lead in seeking cyber covers to protect their computer systems from hack attacks
ICICI Bank has successfully raised $1 billion through a five-year senior unsecured US dollar bond, marking its first public dollar bond issuance since 2017 and the largest single-tranche US dollar bond issuance by an Indian issuer so far this year.
'Credit growth in India remains in double digits, even though corporate borrowing is subdued.' 'Corporate credit is weak because companies are cash-rich and cautious amid global uncertainty.'
'Pandemic has triggered interest and awareness among the people about the need for healthcare.'
Before heading abroad, ensure your travel insurance policy offers all essential coverage and has an adequate sum insured.
SBI Life Insurance is a joint venture between SBI and BNP Paribas Cardif.
Tenants should primarily buy contents insurance. 'This covers personal belongings like electronics, furniture, clothes, and appliances against risks such as fire, theft, floods, and other natural calamities.
New India Assurance and Niva Bupa have invested in the Bima Sugam India Federation.
While basic policies focus on structural damage, comprehensive ones extend to household contents like furniture, electronics, clothing, and other personal belongings.
Ask rediffGURU Naveenn Kummar your insurance mutual fund and personal finance-related questions.
'Health and motor insurance will continue to be our two most important segments'
The country's biggest bank SBI on Friday posted over two-fold jump in standalone net profit at Rs 16,884 crore for the first quarter of the current financial year, helped by decline in bad loans and improvement in interest income. State Bank of India (SBI) had reported a net profit of Rs 6,068 crore in the April-June quarter of 2022-23. The bank's total income increased to Rs 1,08,039 crore in the first quarter of 2023-24, as against Rs 74,989 crore in the same period a year ago, as per the regulatory filing.
Ask rediffGURU Naveenn Kummar your insurance mutual fund and personal finance-related questions.
The Reserve Bank is unlikely to ease the benchmark policy rate during 2024 given the uncertainty over food inflation, State Bank of India (SBI) chairman C S Setty has said. The US Federal Reserve's first cut in interest rates in more than four years is expected soon, triggering central banks in other economies to follow suit. "On the rate front, a lot of central banks are taking independent calls.
Ask rediffGURU Reetika Sharma your insurance, mutual fund and personal finance-related questions.
According to analysts, this is the highest premium paid by a foreign insurer to a domestic partner.
State Bank of India (SBI) is asking prospective partners for its general insurance foray to pay it Rs 300 crore (Rs 3 billion) to Rs 350 crore (Rs 3.5 billion) as entry premium, insurance industry sources said.
Ensure the sum insured for the super topup is enough to cover even worst-case scenarios.
SBI's entry into general insurance is expected to pose challenges to existing players. Public sector United India Insurance, New India Assurance, Oriental Insurance and National Insurance hold a major share of the business. In private sector, leading players include Bajaj Allianz, ICICI Lombard, IFFCO-Tokio General Insurance and Reliance General Insurance.
Ask rediffGURU and PF, MF and insurance expert Purshotam Lal your mutual fund, insurance and personal finance-related questions.
'Corporates now have multiple funding sources beyond banks, and many are sitting on large cash reserves.'
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.
Ask rediffGURU Reetika Sharma your insurance, mutual fund and personal finance-related questions.
rediffGURU Jinal Mehta answers readers' financial planning and health insurance queries
India's financial sector is dominated by large government-owned and private-sector banks.
Recurring natural calamities along the east coast, especially Vizag and Chennai, to increase insurance premium rates in the region, reports T E Narasimhan.
