State Bank of India will finalise the terms of general insurance venture with Insurance Australia Group (IAG) in the next few weeks, Bank's Chairman O P Bhatt said.

"It (general insurance joint venture) is at the final stages and we are seeking RBI approval," he said.

Once a mutual agreement is reached, the joint venture will approach the Insurance Regulatory and Development Authority (IRDA) for necessary approval, Bhatt said.

The approval from IRDA usually takes three to six months.

Both parties signed an agreement in May this year to form a new company for the proposed insurance business. Under the pact, SBI will hold a 74 percent stake in the entity while remaining 26 percent will be with the Australian partner.

SBI had appointed Ernst & Young as the consultant for its general insurance foray.

SBI's entry into non-life insurance with a massive network of about 10,000 branches is expected to pose significant challenge to about 20 existing players.

In the country's general insurance industry, there are four major public sector companies -- United India Insurance, New India Assurance, Oriental Insurance and National Insurance, besides over a dozen private sector players.

The country's largest lender, which has a customer base of above 13 crore, is already operating in the life insurance business through its subsidiary SBI Life.