Public sector lender State Bank of India (SBI) today received final approval for its general insurance venture from the sectoral regulator IRDA.
SBI has formed a joint venture -- SBI General Insurance -- with Australia-based Insurance Australia Group (IAG).
The R3 approval (final approval required for starting an insurance company) was given to SBI today, IRDA said.
With this, the total number of general insurers registered with IRDA has gone up to 22.
Last week, SBI had informed the Bombay Stock Exchange that its general insurance foray will commence operations in the first half of next year.
Both the companies have together invested over Rs 650 crore into the venture. While SBI has put in Rs 111 crore towards its 74 per cent share in the venture, IAG has invested Rs 542.10 crore for 26 per cent of the share capital of the joint venture, SBI General Insurance.
"The general insurance subsidiary is expected to commence commercial operations in the first half of the calendar year 2010," SBI had said in a filing.
In November 2008, both the companies had entered into an agreement to set up a general insurance subsidiary.
IAG in a statement had said the investment would be funded from internal resources. "The capital has been invested directly into the joint venture vehicle and no further capital is expected to be required until at least the fourth year of operation," it said.
