Friday, October 7, 2005
SBI to take over Kenyan commercial bank Giro
Reuters
Mumbai, October 7, 2005
India's largest commerical bank, State Bank of India, said on Friday it had entered into an agreement to buy 76 per cent of Kenya's Giro Commercial Bank as part of a broader plan to expand overseas.
Nairobi-based Giro Commercial is a closely held bank, founded by people of Indian origin, with six branches in Nairobi, Mombassa and Kisumu.
"With the proposed acquisition, State Bank would increase its footfall in Africa where we are already present in four other countries," SBI Chairman AK Purwar said in a statement.
The cost of the acquisition was not disclosed. It is SBI's second acquisition this year after the $8 million purchase of Indian Ocean International Bank in Mauritius in February. SBI also has offices in Nigeria and South Africa.
SBI has been eyeing banks in Asia and Africa for months now, with an aim to expanding overseas operations to 15-20 per cent of its profits in two to three years compared with 5-6 per cent now.
Ahead of the announcement, SBI's shares closed nearly 1 per cent lower at Rs 916.1, valuing it at $10.9 billion.
© HT Media Ltd. 2005.