State Bank of India is seeking acquisitions in the UK as the nation’s banks are looking to expand their businesses internationally – reported The Financial Times.
It has been reported that Indian banks are eager to expand their footprint, riding on the back of the nation’s healthy economic growth. Experts opine that India’s conservative regulatory regime, which madates banks to keep a portion of their cash reserves with the central bank, RBI and curbs using complex derivatives, has safeguarded the nation’s financial system from the financial crisis.
Of late, the international business for SBI and other Indian banks has gathered momentum as the corporate activity of the Indian companies witnessed an upsurge. As a result, they are raising foreign currency to help fund Indian firms engaging in foreign acquisitions.
SBI has claimed that it has close to 12,000 branches in India and 132 abroad, including seven in the UK. Reportedly, it is planning to expand its footprint with 40 branches, including five in the UK by June 2010.
Om Prakash Bhatt, chairman of SBI, said that acquisitions would allow it to maintain 40% rate of growth in the UK. “We are not averse to inorganic growth. We are looking at all geographies and looking at smaller acquisitions in the UK,” he added. However, P Chaudhuri, deputy managing director, said that the acquisitions would not exceed $1 billion, reported the newspaper, citing Reuters as its source.
