SBI Life to Consider IPO After Capital Infusion by JV Partner

Kolkata: SBI Life Insurance would consider going for an initial public offer (IPO) after the proposed hike in capital infusion by its foreign JV partner BNP Paribas Cardiff.

"Hike in capital infusion to the extent of 10 per cent is being discussed now. Floating an IPO would then be considered," MD and CEO of SBI Life Arijit Basu told reporters here on Wednesday.

He said as per growth assessment, there is no need for capital for the next two years. The capital base of the company is Rs 1,000 crore, he said. Basu said that valuation of SBI Life is now in process and both the partners have appointed actuaries for this purpose.

"It is unlikely that the transaction of capital infusion will take place this year. It is expected that it will happen early next fiscal," he said.

Holding the number two position among private insurers in terms of new premium income, Basu said the company is expecting to register a growth of 25-30 per cent in both individual and group premium segments.

During the current fiscal, the first premium income is expected to be Rs 6,750 crore, while renewal premium is likely to be Rs 8,500 crore. Net profit projection for the current fiscal is Rs 810 crore, he said.

Sales of policies from the bancassurance channel is rising and stands at 60 per cent, he said.