SBI to initiate IPO offer of its life insurance arm

India`s largest lender, the State Bank of India on Friday said it would initiate the process for selling 10 percent of its shares in its life insurance arm through an initial public offering (IPO).

According to a regulatory filing, the executive committee of the SBI`s central board has accorded in-principle approval to "initiate process for offer for sale of 10 percent of shares through initial public offer".

The bank also said it would explore the possibility of diluting 8 percent of its stake in SBI Life Insurance through IPO offer, out of total 10 per cent offer for sale.

SBI owns 70.1% of the life insurer while BNP Paribas Cardif owns 26%.