State Bank of India planning operations in South Korea, Sao Paulo

Monday, 3 January 2011 00:01 - - {{hitsCtrl.values.hits}}

NEW DELHI: In a bid to expand its overseas presence, the State Bank of India is planning to set up its operations in South Korea, Sao Paulo and Botswana this year.

“The bank is looking at opening a representative office in Brazilian city Sao Paulo and a full service branch in South Korea,” a senior official of SBI told the media. Besides, the bank is also planning to set up a subsidiary in Botswana, the official said.

The country’s largest lender is in the process of seeking regulatory approval for setting up operation in the respective country. SBI now has 151 offices across 32 countries, including the US, the UK, Singapore, Canada and Mauritius.

The focus of these offices is India-related business, the official said, adding, the overseas operations take care of international needs of the bank’s foreign customers, in addition to conducting retail operations. At present, the bank’s overseas business contributes about 16 per cent to the bank’s total business.

The number of foreign offices increased from 92 as on 31 March, 2009, to 142 as on 31 March, 2010, spread across 32 countries. The bank increased its stake from 50 per cent to 55 per cent in Nepal SBI Bank Ltd. during the financial year 2010, making it the bank’s sixth foreign banking subsidiary.

In a bid to expand its Southeast Asia network, SBI is also on a look out for acquisition of a bank in Indonesia in cash deal not exceeding USD 100 million (about Rs. 450 crore). At present, SBI has a subsidiary in Indonesia called PT Bank SBI Indonesia with a network of six branches.

As far as domestic expansion is concerned, the bank opened 611 new branches and 4,206 new ATMs between October 2009 to September 2010.