SBI to ramp up overseas business; plans $1 billion acquisitions

India's largest lender, the State Bank of India (SBI), is looking at acquisitions of up to $1 billion in the United Kingdom and expects to maintain a 40 per cent growth rate in its UK business, chairman O P Bhatt told reporters at a press meet in Mumbai yesterday, which was also attended by UK minister for trade, investment and business Mervyn Davies.

SBI sees robust growth in overseas businesses, which is estimated to contribute more than 10 per cent to its profits in 2009-10, Bhatt said. The bank's overseas business chipped in an 8 per cent to its profit last year.

Meanwhile, the assets of SBI's foreign offices and subsidiaries grew by 20 per cent to $23.73 billion in 2008-09.

The banking major also mulls making London the hub of its European operations, as the UK business accounted for three-quarters of its $4 billion European business.

''We are not averse to inorganic growth. We are looking at all geographies and looking at smaller acquisitions in the UK,'' Bhatt said. SBI deputy managing director P Chaudhuri, however, confirmed any acquisitions would not exceed $1 billion.

In order to help the bank consolidate its position in the global financial services industry, SBI is planning to set up offices in West Asia, South Africa, Saudi Arabia, the US, the UK and Hong Kong, mainly focusing on corporate banking and project financing.