State Bank of India (SBI) has signed a joint venture (JV) agreement with Oman-based State General Reserve Fund (SGRF) to set up a general purpose $100m private equity fund to make equity investments across various sectors in India.

SGRF, administered by Oman’s Ministry of Finance, is a sovereign wealth fund established in 1980 to manage the investments of Oman’s reserves.

The joint venture agreement is a part of sovereign level collaboration between the Government of India and the Government of Sultanate of Oman.

The private equity fund shall have initial target corpus of $100m and is proposed to be expanded in future up to a level of $1.5bn, said SBI.

It is agreed by SBI and SGRF that the joint venture will have equal management participation and profit will be shared equally.