The State Bank of India (SBI) would see a outgo of $6 billion (Rs 26,000 crore) on account of redemption of India Millennium Bond this year. | |
| The actual amount would be higher if interest is taken into account. Talking to newspersons in Kolkata today, A K Purwar, chairman SBI said, "There would be a redemption of around $6 billion on account of redemption of India Millennium Bond this year." |
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| "We would however try to retain this fund through our overseas offices and branches. Foreign offices would gear themselves to retain this fund in the bank so that it does not witness outflow of the entire amount," he explained. |
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| Talking about foreign initiatives Purwar said, "Plans are to enhance presence in overseas locations and the number of offices would be increased from 54 at present to 75 this year with presence in 36 countries. This would also involve overseas acquisition in countries like Africa and Asia." |
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| "There could be more than one acquisition in the overseas front," he added. In 2003 the bank had to redeem another Rs 26,000 crore including interest for the Resurgent India Bond (RIB). |
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| "It is our experience that around 35 per cent to 40 per cent of bonds or any other paper that come up for redemption comes back to us in the form of deposits in one form or other. It is expected that a similar amount will also come back to us this time too," explained officials from the bank. |
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| The chairman also informed that overseas operations contributed to 4.72 per cent to the profits of the bank. |
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| Talking about mergers and acquisitions in the domestic banking industry, Purwar said, "M&A would be the order of the day in the next three to four years. Which would also see merger of all associate banks with SBI. We are not merging the seven associate banks with SBI because of a choice taken by the board, but these banks would eventually have to be merged in the next three to four years." |
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| Talking about M&A in the industry, Purwar said, "M&A would provide the banks economic size and funds that would enable them to undertake investment in information technology and manpower." |
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