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Our Bureau

Kolkata , May 20

STATE Bank of India is likely to offer a special deposit scheme, chiefly through its overseas offices, with a view to attracting a significant portion of the India Millennium Deposits that are expected to come up for redemption shortly.

The bank, which has proposed to put its foreign branches on high alert to achieve its goal, is readying to compete in this regard with major institutions such as Citibank, which are also expected to beef up their own operations for the same purpose.

As much as $6 billion will be available on redemption.

The bank, interestingly, is looking at fresh acquisitions, especially in Asia and Africa. "We are exploring the possibility of taking over small- and mid-sized banks, those have clean balance sheets and good retail presence," Mr A.K. Purwar, Chairman, maintained.

International operations will be one of the bank's focus areas in the days ahead, the Chairman said, adding that SBI was looking forward to increasing the number of foreign branches (now more than 54) to 75. These will be spread over more than 30 nations.

SBI has recently opened representative office in Angola and opened a branch in Bangladesh. It also expects to scale up operations in the neighbouring country.

In the domestic market, SBI expects interest rates to be stable over the short term. While inflation remains at a moderate level, crude oil prices may create concerns. "There is no control over the oil scenario. Keeping that and other factors like government borrowings in mind, it is fair to suggest that interest rates will be stable in the short run," he observed.

On the subsidiaries, the SBI Chief said SBI Capital Markets currently has a robust profile, thanks to the kind of business it has been doing in the recent past. It may not need a partner, a matter that has been talked about in some circles.

The other subsidiaries, including SBI Funds Management Co, too have lined up ambitious plans. "We are likely to foray into pension funds, for which another subsidiary will be required," he stated. The bank is waiting for further clarity on the pension fund front.

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