The largest state run bank, State Bank of India, today signed an agreement with Insurance Australia Group (IAG) to expand its network in insurance sector. It would set 74:26 joint ventures with AIG for general insurance business in the country. The bank would soon approach the Insurance Regulatory & Development Authority to get necessary approval for joint venture. It has already got administrative approval to forge a JV with Societe Generale for the custodial business.

The JV is expected to sell their products in the next year. SBI has already existence in the life insurance business with a 74:26 JV with Cardiff. There are 14 companies working in insurance sector in India at present. Out of which, Indian government owned four companies control over 60 per cent of the insurance market.  

SBI chairman, O P Bhatt said that general insurance sector would grow at 15-20 per cent annually over 10 years in the country. The JV would further strengthen SBI’s position in the insurance segment. IAG Managing Director and Chief Executive Officer, Michael Wilkins added that the JV would help to achieve its long term growth plans. The company is happy to enter in high potential Indian insurance market.