IAG’s stake in a major Indian general insurance operation may be substantially increased before the end of the year.

The State Bank of India (SBI) says it has begun a valuation process and hopes to complete the sale of an increased stake to IAG.

IAG has confirmed it intends to take advantage of a rule change approved by India’s Parliament earlier this year, which allows foreign companies to up stakes in insurers to 49%.

IAG already owns 26% of SBI General, and says it has confidence in the Indian market and the opportunities it presents.