State Bank of India (SBI), on Friday said that the executive committee of its central board has approved the divestment of 3.9% stake in SBI Life Insurance Company Ltd.

The bank plans to divest 39 million shares at a price of Rs 460 per share, it said in a notification to the stock exchanges. The bank stands to earn Rs 1,794 crore for its stake sale. This divestment values the life insurance company at Rs 46,000 crore.

The transaction completion is subject to regulatory approvals.

“An investment vehicle affiliated with KKR-managed funds and an affiliate of Temasek, the Singapore based Investment Company, will each purchase 1.95 crore shares from SBI,” the bank said in a statement.SBI Life is a joint venture between India’s largest lender SBI and BNP Paribas Cardiff. SBI owns 74% in the life insurer. Upon completion of the transaction, SBI will hold 70.1% stake in SBI Life while its joint venture partner, BNP Paribas Cardif, will continue to hold 26%, the bank said.