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Our Bureau

Mumbai , Oct. 7

STATE Bank of India is acquiring 76 per cent stake in Kenyan bank, Giro Commercial Bank, for $7 million, as part of its global expansion plans.

This will increase SBI's footage in Africa, where it is already present in four countries, said Mr A.K. Purwar, Chairman.

Speaking to reporters on the sidelines of a banking seminar, Mr Purwar said, "We will approach the local regulator in Kenya. We will look at mainly retail and corporate lending."

According to a press release, Giro Commercial Bank is a closely held entity with promoters of Indian origin. It has its registered office in Nairobi and six branches in Nairobi, Mombassa and Kisumu.

This is SBI's second overseas acquisition, after it picked up a 51 per cent stake in the Mauritius-based Indian Ocean International Bank in February this year, for $8 million.

With the second acquisition this year, SBI hopes to increase the share of its overseas operations in its net profit from 5-6 per cent to 15-20 per cent, in two-three years.

SBI also has offices in Nigeria and South Africa and has been eyeing banks in Asia and Africa for months now. Currently, SBI has 66 offices and branches in 29 countries worldwide.

The SBI stock closed at Rs 916, down one per cent on the BSE today.

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