State Bank of India mulls expansion in Lanka

To open two more branches here:

Hiran H. SENEWIRATNE in Hyderabad

India’s richest bank, State Bank of India (SBI) is looking at possibilities to expand business operations in Sri Lanka to reap benefits from the Indo-Sri Lanka Free Trade Agreement, its SBI Chairman O.P. Bhatt said.

Speaking to the Daily News Business he said Sri Lanka is one of the growing markets in the region. This has prompted them to increase the number of branches to strengthen Sri Lankan operations considerably.

He said their main focus is on the free trade agreement between the two countries. Initially, they will set up two SBI branches shortly to serve Indian customers, Indians living in Sri Lanka and other customers more effectively and efficiently.

At present SPI operates only one branch in Colombo. This will expand to three with the opening of two branches shortly.

Bhatt, attending the Indian Banking Conference in Hyderabad on Friday organised by the Indian School of Business (ISB) under the theme on “Economic and Social Responsibilities of Indian Commercial Banks: Is There a Healthy Compromise,” said the Indian public sector is a little handicapped to compete with the vibrant private sector banks in India.

He said that India is going through rapid economic development with an annual GDP growth of more than 8.9 per cent. Therefore, the banking sector has to play a major role to fund major infrastructure projects that amounts to more than US$ 600 billion.

“India’s middle class population is the fastest growing population in the world. Therefore, to cater the demand and improve the service SBI is going for 20,000 new recruits which is the single highest recruitment anywhere in the world”, he said.

Chairman SBI also said that SBI having won all the ratings in customer care by all the rating agencies is now improving service standards to cater to future demands in the banking sector.

International banking services of SBI are delivered for its Indian customers, non-resident Indians, foreign entities and banks through a network 67 offices/branches, 29 countries, spread over all time zones.

The network is augmented by a cluster of overseas and NRI branches within India and correspondent links with 522 banks, the world over. The Bank’s joint ventures and subsidiaries abroad further underline the Bank’s international presence.

‘The services include corporate lending, loan syndications, merchant banking, handling Letters of Credit and Guarantees, short-term financing, and collection of documentary credits and remittances.

The Bank has carved a niche for itself in the Euroland with branches located in Antwerp, Paris and Frankfurt. Indian banks and corporate are able to avail single-window Euro services from the Bank’s Frankfurt branch.