SBI to enter Non-Life insurance sector

State Bank of India (SBI), the country’s largest public sector bank, after sucessfully setting up its life insurance business, is now looking ahead to make an entry in the non-life insurance sector. “We are interested in the general insurance business and are talking to some foreign companies in this regard. We expect to make a formal announcement in 3-6 months”, said chairman Om. Prakash. Bhatt.

A total of 6-7 companies from Australia, Europe and United States have evinced an interest in the proposed joint venture. “We are in the process of short listing 2-3 companies”, Bhatt said, without divulging any further details.

Since the insurance business is very technical, the bank was interested in a partner who knew the rules of the game. "We are looking for a partner having product development expertise in sectors such as micro-insurance”, Bhatt said.

While the economy is booming, growth is confined to big corporates, export-oriented industries and small and medium enterprises (SMEs), while leaving small businesses and artisans untouched. The public sector and government is taking the initiative to provide insurance coverage to the excluded sectors, he added.

Giving a detailed account of the bank's various plans in the pipeline, he said a unique 'payment gateway' facility was expected to be put in place in the next three months to ensure speedy, hassle-free and smooth flow of foreign investment into the country where rapid industrialisation is taking place.

Stating that the proposed system was like the core banking facility, he said funds would reach the desired destination within 24 hours under payment gateway mechanism, which would be much faster and efficient compared to the traditional deposit procedures.