The State Bank of India 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 acquisition.
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 explained.
Meanwhile, it has also firmed up plans of enhancing its presence at 70 locations in 36 countries by the 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 (Rs 36.81 billion), up from Rs 3,105 crore (Rs 31.05 billion) posted in the previous fiscal.
