State Bank of India is looking to sell 5 percent stake in its life insurance arm SBI Life. The country's largest bank owns 74 percent in SBI Life while its foreign partner BNP Paribas owns 26 percent.
The stake sale will help infuse funds into the bank's balance sheet and help it discover price for a potential IPO for SBI Life. Currently, the insurer could be valued at Rs 30,000 crore though merchant bankers will be appointed to come up with a value. SBI is currently talked to private-equity investors and institutions for the stake sale.
