The Hindu Business Line : Global Trade Finance, SBI Factors merger likely

Kolkata, July 3 The merger of Global Trade Finance with SBI Factors and Commercial Services could come through soon, Mr D.S. Das, Managing Director and Chief Executive Officer, SBI Factors, said here on Thursday.

The merged entity would have a combined business of about Rs 7,000 crore as on March 2009, and a market share of 80 per cent. Mr Das indicated that the merger could be complete in a year’s time.

He, however, said that the decision on the merger and the time frame would be decided by SBI, which holds 91 per cent stake in the company. Bank of Maharashtra holds 9 per cent stake in it.

“These two organisations have to be merged down the line, it is, however, only a matter of time,” said Mr Das, speaking to newspersons on the occasion of the opening of SBI Factors branch in Kolkata, on Thursday.

Talking about the factoring business in India, Mr Das said the volume of factoring in the country has witnessed a steady growth. “The volume of factoring in India has grown from Rs 7,000 crore in 2002 to Rs 34,000 crore in 2007,” he said.

SBI Factors has recorded a business of Rs 1,100 crore as on March 2008 and targets a business of about Rs 2,000 crore by March 2009.

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