State Bank of India on acquiring spree
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.
The closely-held Giro Commercial Bank, based in Nairobi, was founded by people of Indian origin. It has six branches in Nairobi, and one each at Mombassa and Kisumu. Giro Commercial Bank has an asset base of $60m as on August 30, ‘05, and is ranked 23 among Kenyan banks in terms of asset size.
This will increase SBI's footage in Africa. In Africa, SBI has one branch in Johannesburg, one representative office in Angola and one subsidiary in Nigeria called the Indo-Nigerian Bank. Currently, SBI has 66 offices and branches in 29 countries worldwide.
This is the second overseas acquisition by the SBI. Earlier this year SBI had bought for $10 million a 51 per cent stake in Mauritius-based Indian Ocean International Bank, having a network of 10 branches and 10 ATMs. Among Indian banks, ICICI Bank had acquired Russian bank Investitsionno-Kreditny Bank, with one branch in Moscow and assets of $4.4m.
As per reports, SBI is also going to bid for Rupali Bank of Bangladesh, for which it has already obtained permission from the RBI. It is in the process of acquiring two more banks with similar asset sizes ranging from $50 million to $200 million.
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