The Hindu Business Line : SBI likely to hike deposit, lending rates

THE Chairman of State Bank of India, Mr A.K. Purwar, today hinted that the bank is likely to announce an increase in its deposit and lending rates soon.

"We are reviewing both (deposit and lending rates)," Mr Purwar said on the sidelines of a banking conference.

Later, addressing a session on `Creating global winners from India,' Mr Purwar said that banks should go in for mergers and acquisitions that would lead to the creation of four to five world-class banks.

He said that wherever M&As were not possible, the banks should go in for strategic alliances to increase their reach.

Mr Purwar said that if Indian banks have to really become big they should look at expanding their overseas operations.

"Most world-class banks across the globe have almost half of their profits coming from overseas operations," he said.

He said SBI itself was looking at aggressive expansion overseas by opening new branches in several countries including the neighbouring countries in Asia and in West Asia and Africa.

Chairing the session, the Additional Secretary, (Financial Sector), Mr Vinod Rai, said that the Government would try to arm the banks with all it needs to become winners in a competitive global market.

However, he said that the test as to who would succeed would lie in individual efforts of the banks and the bankers leading them.

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