State Bank of India (SBI), the largest public sector lender, announced that the executive committee of the central board (ECCB) has authorised divestment of SBI's stake in SBI Life Insurance by upto 10%.

Earlier, the bank has decided to initiate the necessary action as per JV agreement for dilution of SBI's stake in SBI General Insurance from 76% to 51% with corresponding increase of stake of IAG from 26% to 49%, including appointment of a valuer to facilitate valuation and price discovery.

Shares of the bank gained Rs 1.05, or 0.39%, to trade at Rs 268.95. The total volume of shares traded was 260,279 at the BSE (9.56 a.m., Tuesday).