Thursday, February 17 2005 17:53 Hrs (IST) - World Time -

New Delhi: As part of its vision to become a multinational corporation, State Bank of India (SBI) is now scouting for more banks in South Asia and Africa while steadily consolidating its seven associate banks.

"We are scouting a couple of countries in Asia and Africa to acquire a bank. We had recently acquired a bank in Mauritius," SBI chairman A K Purwar said on the sidelines of a function in New Delhi today (Feb 17, 2005).

SBI recently concluded an acqusition of Mauritius-based Indian Ocean International Bank Ltd for about $ 8 million. SBI picked up 51 per cent stake in the bank.

The retail banking outfit, listed at Mauritius Stock Exchange, was founded in 1978 and has a market share of 7-10 per cent.

The move is part of the bank's efforts to become a multinational bank having a global presence.

Asked about the consolidation process in the country, Purwar said, "The merger of SBI with its associates is not in cold storage. We are moving in that direction. It will take some time."

SBI plans to virtually merge the associates banks in terms of technology, business process, accounting system, which would reduce the cost substantially, he said.

At present, SBI and its seven associates, State Bank of Patiala, State Bank of Bikaner and Jaipur, State Bank of Indore, State Bank of Saurashtra, State Bank of Mysore, State Bank of Hyderabad and State Bank of Travancore, have over 40 per cent share of Indian banking market.

The SBI group has over 14,000 branches all over India and in most of the overseas markets.