The Hindu Business Line : SBI to buy 2 banks in Asia, Africa region

AS part of its efforts to expand its presence abroad, State Bank of India plans to acquire two "small to medium sized" banks in the next six to eight weeks.

"The two banks are in the Asia and Africa region. The due diligence is on. One of them is listed," Mr A.K. Purwar, SBI Chairman, told reporters on the sidelines of a banking symposium here today.

SBI, which has a balance sheet size of $145 billion, has a market share of over 25 per cent in the Indian banking system. Global operations contribute six per cent of the profitability of the Bank, which has 65 offices in 29 countries.

SBI had in February this year acquired control of the Mauritius-based Indian Ocean International Bank Ltd for a consideration of $10 million.

In his address at the banking symposium on "Designing the Global Financial Strategy", jointly organised by the Indian Institute of Foreign Trade and Assocham, Mr Purwar said SBI was on its way to globalise its operations. He said SBI was in the last three years looking to buy local banks. "But, since that is not happening, we are focusing on international acquisitions," Mr Purwar said.

The SBI Chairman underscored the need for the financial sector to induct world-class business processes besides adopting the best technologies. Mr Purwar also said SBI might enter into networking alliances for ATMs with eight more banks.

Asked about SBI's plans for raising tier-II capital, Mr Purwar told reporters that any move on raising any form of capital would come about only after the second quarter results of the Bank.

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