SBI Life, the private sector life insurance company in joint venture with BNP Paribas Cardif, is considering coming up with an IPO (initial public offer) for sale of equity shares in the next financial year, MD & CEO Arijit Basu told CNBC TV18 in an interview. \u201cAn IPO would be actively considered in the next financial year,\u201d Basu said. However, Basu declined to propose a market value for the share issue. \u201cValuation would depend on market valuation at that point in time. The company would calculate the value of its existing business, which we have done last year. There will be fresh valuation done which will be vetted as on 31st March,\u201d he said, adding, \u201cHow the market looks at the industry and our company, would determine the final value.\u201d SBI Life is 70.1% owned by State Bank of India - India\u2019s largest bank. France\u2019s BNP Paribas Cardif holds 26% in the private insurer. The private insurance firm, currently valued at about Rs 46,000 crore. Insurance firms are required to dilute minimum 10% equity stake for listing, according to Indian Rules. Basu told CNBC TV18 that BNP Paribas has decided not to to increase its stake in the insurance firm. State Bank of India had sold 3.9% equity stake to Temasek and KKR for Rs 1,755 crore in December last year, valuing the company at Rs 46,000 crore. You may also like to watch: [jwplayer Odbh75qJ] Earlier this month, the Union Cabinet had approved the merger of State Bank of India and its five associate banks, paving way for bolstering the business operations of the state-run lending behemoth. The merger of SBI with its associates will lead to operational efficiency within banks and will lead to reduced cost of funds, Finance Minister Arun Jaitley had said, adding, \u201cSBI will become a global player post associate bank merger.\u201d State Bank of India is the country\u2019s largest bank, and has five associate banks, namely, State Bank of Bikaner and Jaipur, State Bank of Travancore, State Bank of Mysore, State Bank of Hyderabad and State Bank of Patiala. The former three are listed, while the latter two are not. Merging of another state-run lender Bhartiya Mahila Bank into SBI hasn\u2019t been finalised yet. State Bank of India Chairman Arundhati Bhattacharya said she expects the merger to be completes in the next financial year 2017-18, as SBI would not want to undertake such as large exercise so close to the end of the current financial year.