[sbinews] SBI assessing two banks for buyouts (Business Standard)

  • From: "Rajendra S. Pai" <rspai9@xxxxxxxxx>
  • To: sbinews@xxxxxxxxxxxxx
  • Date: Mon, 31 May 2004 20:42:16 -0700 (PDT)

SBI assessing two banks for buyouts 
(Business Standard) 
Debjoy Sengupta / Kolkata June 01,2004 
The State Bank of India (SBI) has zeroed in on two
foreign banks both of which it intends to acquire in
the next few months ? one each in Africa and Asia.  
It has also engaged a consultant for advising the
company on the process of acquisition.  
The bank has, in fact, initiated due diligence in one
case and has entered into talks for acquiring a
controlling stake in another, A K Purwar, chairman of
SBI, told Business Standard.  
Purwar declined to name the bank where due diligence
is on, but said the process was likely to be completed
in the next three to four months.  
?Talks with the second bank could also conclude by
then,? he explained.  
According to sources in the bank, this would be
followed by due diligence of this bank too, before
SBI hopes to complete the whole process by the end of
the current fiscal. ?We would announce the acquisition
by March 2005,? informed Purwar.  
In a parallel development, SBI has also firmed up
plans of setting up a bank in joint venture with a
local partner in Senegal.  
?The idea is to enhance our presence in areas overseas
where there are large Indian population. We intend to
take over banks in areas which will provide us with an
edge and enhanced presence as part of our strategy to
increase business from foreign operations,? Purwar
Meanwhile it has also firmed up plans of enhancing its
presence at 70 locations in 36 countries by end of the
current fiscal. It also intends to more than double
its net profits from foreign operations to over $80
million, which stood at $40 million in 2003-04.  
The largest commercial bank has in fact firmed up
plans of opening a third branch in Bangladesh, and
additional branches in Indonesia, Malaysia, Thailand,
Myanmar. It will also open representative offices in
Angola, and a subsidiary in Botswana.  
Earlier, SBI announced that its net profit for the
financial year ended March 31, 2004 rose 18.55 per
cent to Rs 3,681 crore, up per cent from Rs 3,105
crore posted in the previous fiscal.  
Consolidated income rose to Rs 52,484 crore from Rs
49,254 crore. SBI will pay a dividend of 110 per cent,
including a special dividend of 10 per cent. Earnings
per share rose to Rs 105.09 from Rs 79.78 in 2002-03
in the banks consolidated accounts.  

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