Mumbai: On Monday, State Bank of India (SBI), which is the nation’s
largest lender said that it will undertake a detailed review of its
international operations and may close some non-lucrative branches.
SBI
Managing Director for Corporate Banking B Sriram said: “We do a yearly review
of our international operations, but this time we are doing a
medium-to-long-term strategic review of our foreign operations.” “We will come
out with medium-term targets which shall include business, profit, contribution
to the book in terms of risks as per regulations and compliances and branch
strategy,” he further added. The new corporate structure, a subsidiary, would be in place by
March 2017, Sriram added.
Sriram said
the review will be completed over the next two months and a report will be
presented to the board. As part of the review, the bank is looking at closing
certain non-lucrative branches which have not performed as per expectations.
In Britain,
SBI has been asked by the local regulator to convert into a subsidiary rather
than continue as a branch by March 2017, he said, adding the wholesale banking
will continue as a branch. Going by revenues, he said Britain, US, Hong Kong,
West Asia and Japan see good business. On the margins front, he said Nepal,
Maldives and Bangladesh are very lucrative geographies, and added that
generally the spreads are in sync with the country’s sovereign ratings.
At the end
of December 2015, SBI had a foreign network of 190 offices spanning 36
countries.
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