IAG has confirmed an Indian media report that “penultimate approval” has been given to its insurance joint venture with the State Bank of India.

The Times of India says the “final go-ahead will be given once they [IAG] bring in the required capital”.

An IAG spokesman today confirmed the development. “The Indian insurance industry regulator, IRDA, has provided the second approval of a three-stage process for IAG’s general insurance joint venture with the State Bank of India,” she said.  

The company expects the final stage to be completed next month in line with plans to commence trading in the first half of next year.

The Times of India report says the joint venture’s entry into the Indian market “is expected to create ripples, as the bank has a distribution network of close to 14,000 branches and is reckoned to be a formidable player in auto and home loans”.