subject: Sbi Plans To Boost $a Pair Of Bn, Have A Look At Retail Lending Overseas [print this page] The countrys largest lender, State Bank of India (SBI), is set to boost $2 billion, including 500 million euros from overseas market, in tranches by the top of this money year. The money is being raised to fund the enlargement of the banks international operations.
During 2009-ten, the bank had raised $750 million for five years underneath the banks medium-term loan programme through its foreign offices.
P Chaudhuri, deputy managing director and cluster executive (international banking) of SBI, said though a serious chunk of the quantity would be raised in US dollars, the bank would access markets like Japan and Korea and also a few euro markets to boost the amount.
We need to diversify investor base for our overseas issue, he said,.adding that the quantitative easing by the US Fed last week has brought down overseas borrowings rates. However, he didnt disclose the timing and alternative details of the fund-raising plan. Click and Apply for SBI home loan and select best deals and offers.
The bank is mobilising larger resources to become a bigger player overseas by having exposure in long-term loans, securities and bond markets, said Chaudhuri.
Additionally, the bank, that has been focusing mainly on wholesale banking, needs to foray into retail lending in overseas markets, said Chaudhuri.
On an experiment basis, we have a tendency to have lent a add of $50 million through retail lending in Singapore within the last one year. When achieving success in Singapore, we have a tendency to plan to expand our retail lending operations in countries just like the UK and also the US, said Chaudhuri.
Initially, the main focus would be on increasing the share of retail deposit product and then move to home and auto loan merchandise and provide worth-added services like insurance and mutual funds, besides cross-selling products, said Chaudhuri.
In a bid to make a supporting system from manpower purpose of read, the bank is in the method of recruiting specialised officers up to the extent of a chief manager, numbering around fifty to a hundred over the next one year in the overseas markets. We have a tendency to have already started recruitment from the local markets, said Chaudhuri. Despite volatile world market conditions, the banks foreign offices have maintained comfortable liquidity positions, he said.
