Mumbai (PTI): State Bank of India announced a general insurance joint venture with Australia's Insurance Australia Group (IAG) and plans to commence the business in the current financial year.

State Bank (SBI) proposes to hold a 74 per cent stake in the joint venture with IAG the remaining 26 per cent, subject to regulatory approvals, a press release issued here stated.

Both the parties have signed a Memorandum of Understanding (MoU) for the purpose and both would now jointly work towards finalising a shareholders' agreement before approaching the regulatory authorities for their approval.