Mumbai, March 31 (IANS): Following passage of the law increasing the maximum limit of foreign direct investment in the insurance sector from 26 percent to 49 percent, the State Bank of India (SBI) on Tuesday said it is reducing its existing stake in SBI Life Insurance by a maximum of ten percent.

"The Executive Committee of the Central Board (ECCB) has on March 30, 2015 authorised divestment of SBI's stake in SBI Life Insurance Co. Ltd. by upto 10 percent," the bank said in a regulatory filing with the National Stock Exchange.

SBI Life Insurance is a joint venture between SBI and French insurer BNP Cardif where SBI has a 74 percent stake with the 26 percent holding belonging to the foreign partner.

Last week, SBI, India's largest bank, said it would also be reducing its existing stake in the general insurance venture, SBI General Insurance from the present 76 percent to 51 percent. It is likely that stakes of the foreign partner for this venture, Insurance Australia Group would rise from 26 percent to 49 percent.

From April to December last year, SBI Life Insurance's net profit grew by 14 percent to Rs.615 crore while SBI General Insurance suffered a loss of Rs.63 crore for the same time period.

The life insurance wing has an authorised capital of Rs.2,000 crore and a paid-up capital of Rs.1,000 crore.