Arijit Basu, MD & CEO, SBI Life Insurance said the growth trajectory of SBI Life is on track and the company is confident of delivering upto 25 percent growth in FY15.
Now with the passage of the Insurance Bill, BNP Paribas Cardif would definitely like to hike stake in the company but at present the discussions are at preliminary stages and the final numbers haven’t been decided, said Arijit Basu, MD & CEO, SBI Life Insurance.
The discussions had already commenced post the insurance Ordinance, he added in an interview to CNBC-TV18’s Latha Venkatesh and Sonia Shenoi.
On the listing of SBI Life per se, he said it is unlikely to happen in FY15-16 but the process could begin in the next fiscal because of various regulatory approvals.
SBI Life Insurance is a joint venture between State Bank of India and BNP Paribas Cardif. SBI owns 74% of the total capital and BNP Paribas Cardif the remaining 26%. SBI Life Insurance has an authorized capital of Rs. 2,000 crores and a paid up capital of Rs 1,000 crores.
According to him the growth trajectory of SBI Life is on track and the company is confident of delivering upto 25 percent growth in FY15 and similar growth for the next two years at least. He aslo added that the company at present was adequately capitalised and did not need capital for the next two years, he added.
Talking about inorganic growth, he said currently the company was not interested in buying, although the industry could see some consolidation amongst smaller players.
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SBI stock price
On March 13, 2015, at 11:01 hrs State Bank of India was quoting at Rs 286.35, down Rs 0.85, or 0.3 percent. The 52-week high of the share was Rs 335.90 and the 52-week low was Rs 163.01.
The company’s trailing 12-month (TTM) EPS was at Rs 16.61 per share as per the quarter ended December 2014. The stock’s price-to-earnings (P/E) ratio was 17.24. The latest book value of the company is Rs 158.43 per share. At current value, the price-to-book value of the company is 1.81.