India markets open in 6 hours 49 minutes

SBI board approves stake sale of at least 3.5% in life insurance arm

FE Online
Rupee had settled at 72.12 against the US dollar on Wednesday.

The country's largest lender State Bank of India (SBI) board on Wednesday approved the divestment of at least 3.5 per cent stake in SBI Life through an offer for sale (OFS) route. The executive committee of the central board (ECCB) of SBI in its meeting held today gave its nod to the stake sale decision, SBI said in a regulatory filing on Wednesday. "Divestment of 3,50,00,000 + 1,00,00,000 equity shares constituting 3.5% with an oversubscription upto 1% of its stake in SBI Life to achieve Minimum Public Shareholding of 25% (Part of Bank’s share for MPS) through Offer for Sale process through Stock Exchange mechanism as per the regulatory prescription," the country’s largest public sector lender also said in the filing today.

SBI LIfe's asset under management (AUM) stood at Rs 1.47 lakh crore as on June 30, up 22 per cent from Rs 1.20 lakh crore a year earlier. The private equity firm The Carlyle Group in March this year had acquired 9.25 per cent stake of the SBI Life from co-promoter group BNP Paribas Cardiff for a deal worth nearly Rs 5,500 crore.

Also read: Uday Kotak says number 8 is jinxed; here's what Indian hero must do to beat slowdown villain

SBI Life recorded a rise of 5 per cent in its net profit to Rs 371.90 crore in the first quarter ended June 30 in FY20. The firm’s net profit during the same quarter of the previous financial year ended March 2019 stood at Rs 354.31 crore. The gross written premium during the first quarter of FY20 grew 41 per cent to Rs 6,690 crore in comparison to Rs 4,760 crore a year ago. The shares of SBI closed the intraday trade at Rs 285.20, or 7.20 points or 2.59 per cent on NSE.