State Bank of India (NSEI:SBIN) said it looks to reduce holding in its general insurance joint venture as part of the plan to dilute non-core investment. The government has advised all state-run banks to sell down their non-core assets to unlock capital for funding core business. SBI Chairman Arundhati Bhattacharya said that the bank has initiated talks with the 26% joint venture partner Insurance Australia Group Limited (ASX:IAG) to reduce its stake from 74%.

Bhattacharya said that the bank would also look to dilute its 18.3% holding in UTI Asset Management Company Limited if the entity goes for public listing. "We may sell shares in some strategic investments," she said.