News: SBI to buy 2 banks overseas

(BL 31/05/2006) New Delhi - State Bank of India expects to complete the acquisition of Giro Commercial Bank of Kenya and PT Bank IndoMonex of Indonesia in the next two months.

"We will acquire these two banks in two months time," A.K. Purwar, Chairman, SBI, told reporters on the sidelines of a function held for the release of commemorative coins as part of the bicentennial celebrations of the bank.

Asked about recent rupee movements, Purwar said that it's a market-determined movement and that the bank was doing its normal commercial operations. "We are an open market economy," he said.

He said that the fundamentals of the economy are strong and that there was good credit growth in retail, corporate sector and small and medium enterprises.

On the recent slide in stock market indices, Purwar declined to comment on the quantum of purchases that had SBI made but added that it was a good buying opportunity.