NOTE: SBINEWS DOES NOT PERMIT CIRCULATION OF ATTACHMENTS. ATTACHMENTS, IF ANY, CIRCULATED WILL BE ONLY BECAUSE OF VIRUSES. PLEASE,THEREFORE, IGNORE ATTACHMENTS IF ANY IN SBINEWS MESSAGES ************************************************************************
SBI targets NRIs with new deposit products
The Asian Age India | Our Correspondent
Mumbai: State Bank of India or SBI is planning to introduce new deposit products targeting the non-resident Indians or NRIs. This is in line to retain a part of the huge deposit, the SBI gathered from the NRIs, in the last few years through the India Millennium Deposits.
"We may introduce some deposit products to retain a part of the money that will flow later in 2005, when the India Millennium Deposits mature," said SBI chairman A.K. Purwar on the sidelines of the "International Conference on Communication Convergence: The Change Agent" here on Monday.
SBI had collected about $5 billion from NRIs through the India Millennium Deposits, which will mature in December.The country's largest bank is now facing a major shortage in the deposits.
"The deposit growth is sluggish and the incremental credit to the deposit ratio has reached about 100 per cent," Mr Purwar said. However, he hoped that the position will not hold too long and that resources will have to be mobilised further. He, however, ruled out raising the deposit rates.On its business performance in 2004-05, the SBI chief said that the credit growth was robust.
He expects a 20 per cent growth on the year-on-year basis by the end of March as against over 29 per cent till date. The bank will pay about $8 million for the acquisition of 51 per cent stake in the Indian Ocean International Bank Ltd or IOIB, a Mauritian bank and integrate it with SBI's international business to focus on the retail segment. The country's largest commercial bank group will continue to look at opportunities for acquisition in Africa and Asia. "About $8 million will be paid for acquiring a majority stake in IOIB, which will become a subsidiary of SBI with a representation on the board," Mr Purwar said.
"SBI already has operations in Mauritius and the acquisition will strengthen our presence in the island country, especially in the retail sector," he said.
