SBI Life Insurance Company, the joint venture of SBI and Cardiff, is looking at equity infusion of over Rs 500 crore over the next two years to fund growth and become the second largest life insurer in the country."We expect the life insurance joint venture to reach a slot next to LIC of India in the next two years," SBI chairman A K Purwar said after launching a unit-linked insurance plan today.Currently, SBI distributes insurance products through 5,000 branches, and it expects over 10,000 branches to hawk these products by March 2006, he added.The bank is also planning to enter the non-life insurance business soon, Purwar added.SBI Life managing director S Krishnamurthy said the company is looking at capital infusion of Rs 500 crore in the next two years, but the exact amount would depend on the business plans and regulatory requirements."In the immediate future, Rs 75 crore would be brought in the ratio of ownership (SBI-74% and Cardiff-26%)," Krishnamurthy said.SBI Life has reported a gross premium income of Rs 360 crore during the nine months ended December 2004, and is expecting first premium income for FY05 to be over Rs 600 crore, he added."We have covered over 20 lakh lives till date. To attain the second slot, the number would have to grow to one crore lives every year," Krishnamurthy said.
