The State Bank of India on Friday said it was looking at strategic acquisitions in Asia, Africa and New Zealand and Australia to expand its overseas presence.
"Right now we have 51 offices over 28 countries and we are looking closely for expansion in Asia, Africa and the NZ & A and are also open for strategic acquisitions," SBI Chairman and Managing Director A K Purwar told reporters in Kolkata.
He said in Asia, they were looking for expansion in Indonesia, Malaysia, Thailand, Myanmar, Bangladesh and Sri Lanka while in Africa they were looking at countries like Botswana, Senegal and some other places.
Giving details, Purwar said, as of now they have plans to open Representative Office in Dunbola and full fledged subsidiaries in Botswana and Senegal.
To a query, Purwar said they had already targeted some Commercial Banks in Australia and New Zealand and engaged Consultants for this. He, however, refused to disclose the name of consultants saying, "You will come to know about it when the deal is on verge of finalisation."
Asked whether they had made any provision towards acquisitions abroad, Purwar said, "No specific amount has been earmarked for this. But I can tell you that our balance sheet is strong and we can afford to spend the required amount on overseas acquisitions."
Purwar said during the year 2003-04, SBI had opened a branch at Chittagong in Bangladesh, one at Freno in Canoga Park and one branch each at Port Elizabeth and Cape Town in South Africa.
"Our profit from overseas branches grew by a healthy 40 per cent to $40 million in 2003-04 and this year we expect it to double," he said.
Apart from overseas expansion, Purwar said they were also planning to install 2000 ATMs during the year 2004-05 which will increase the total number of the SBI Group's ATMs to 5,900.
About other business activities, the CMD said they were undertaking a business process reengineering project and has engaged McKinsey & Co, as advisor for the project.
"The objective of this exercise is to strengthen bank's ability to acquire new customers, build lasting relationships with existing customers and to increase customer satisfaction through world-class service," he said.
To a query, Purwar said McKinsey had already started submitting its reports in parts and these were being implemented in some of the branches in Mumbai.