IndiaCatalog.com
India News
Search Web Directory
News Home
State Bank of India to shut 9 foreign offices as part of rationalisation
Posted on 28th June 2018
State Bank of India (SBI) has closed six foreign branches and is in the process of closing down another nine branches as part of rationalisation of overseas operations, said Managing Director Pravin K Gupta.

SBI, country's largest lender, has operations in about 36 countries with nearly 190 branches.

"Capital is generally a constraint for most of the bank sites. Obviously, you want to use your capital at the place where it is best utilised. So, as a part of our foreign branch rationalisation, we have closed about six branches already in the last two years. There are nine more branches under the process to be closed down," Gupta told PTI in an interview.

Not all the branches in the foreign locations are full-fledged offices, he said, adding that in countries like Bangladesh and South Africa there are some small branches as well as some retail branches and there is a need to rationalise them.

Even as the public sector banks have been mandated by the Department of Financial Services to wind-up businesses at unviable locations, SBI itself was looking to rationalise the foreign offices before the order came, Gupta said.

As per the banking sector agenda approved at the PSB Manthan in November last year, public sector banks (PSBs) were asked to examine all of 216 overseas operations.

"Branch rationalisation is an ongoing process. I think every branch has to justify its existence. So unless it is commercially viable, it doesn't make sense for us to be operating particularly in foreign locations," he added.

When asked if closing down branches overseas also means having no operations in those locations, Gupta said SBI will not be exiting such countries. However, it will be closing down small branches or will be merging two-three branches into one.

Besides, given the evolving regulatory environment back home, Gupta said the need to open lot many foreign offices at this point of time is not viable.

"If you see globally, we are already present in the major centres. I don't think there is any major global centre where we are not present. So the need to go to too many new countries at this point of time is not really felt."

By March this year, state-owned banks had closed down 35 overseas branches and representative offices as part of the clean and responsible banking initiative.

Wherein, Bank of India, Andhra Bank, IDBI Bank and Indian Overseas Bank closed down Dubai operations, Punjab National Bank, Canara Bank and Union Bank of India shut their Shanghai offices.

Bank of India also closed down operations in Yangoon and Botswana, while Bank of Baroda and Indian Overseas Bank shut the Hong Kong branch. In addition, PSBs have also closed down various representative offices.

With relation to rationalisation of domestic branches post-merger of its six associate banks and the Bharatiya Mahila Bank with itself with effect from April 1, 2017, the SBI Managing Director said that as many as 1,800 branches have been rationalised during the whole year.

Besides, 250 offices were also closed down that led to huge cost savings.

"In terms of these 1,800 branches and 250 offices, we have seen about Rs 1,000 crore of savings only in the rental income and other expenses. Over the long run, our expectation is that this merger will definitely be beneficial for the bank," Gupta said.

In terms of employees' merger and posting them at right places, Gupta said it took a little bit of SBI's time, but due to a retirement of a lot of personnel as well as a voluntary retirement scheme (VRS), there are currently 16,000 fewer employees than a year ago.

"We are also beginning to see all the savings which could not happen earlier due to duplication," he added.

On being asked about bank's plans to open more branches domestically, he said there are plans to open about 300-350 branches in the current fiscal, of which almost half are to be opened in rural areas.

Related Companies: State Bank of India   

Other Latest News
Isro ahead of TCS among top-rated tech workplaces in India: Report
Posted on 11th December 2018
Technology professionals look towards Indian Space Research Organization (ISRO) as a more aspirational tech workplace than software major Tata Consultancy Services (TCS), according to a report by job search portal Indeed.

Indeed announced the leading technology organisations to work for in India, on the basis of over 100 million ratings and reviews available on Indeed. Leading the list is Adobe Inc., followed by industry giants NVIDIA and Microsoft.


Telangana polls: TRS on course to retaining power if initial trends hold
Posted on 11th December 2018
The TRS was on course to return to power with a thumping majority in Telangana if the initial trends hold, with party candidates leading in 92 out of the total 119 assembly constituencies.

TRS chief K Chandrasekhar Rao (Gajwel), his son K T Rama Rao (Sircilla) and nephew T Harish Rao (Siddipet) have established handsome leads, as the party's gamble to go in for early elections seems to be paying off.


Air India floats tender to sell Nariman Point tower
Posted on 11th December 2018
Mumbai: Air India has floated tender for the sale of its iconic 23-storey tower at Nariman Point in Mumbai. Only government entities are allowed to participate in the bidding for acquiring leasehold rights of the land and building on “as is where is basis.”

“Air India invites sealed bids from government entities for sale of leasehold rights of the land, and its iconic Air India building constructed hereon at Nariman Point, Mumbai, on as is where is basis,” the tender said.


Extradition of once king of good times’ Vijay Mallya from UK to speed up loan recovery process, says SBI
Posted on 11th December 2018
Countrys largest lender State Bank of India (SBI) Tuesday said extradition of fugitive liquor baron Vijay Mallya from the UK to India will speed up the recovery of over Rs 9,000 crore of loans. In a major boost to India’s efforts to bring back Mallya, who is wanted for loan default worth around Rs 9,000 crore to a consortium of 13 banks led by SBI, a UK court Monday ordered his extradition.

Tata Motors aims Harrier at Jeep Compass, Mahindra XUV500
Posted on 11th December 2018
New Delhi: Tata Motors Ltd, which is on a comeback trail, is betting big on its upcoming SUV Tata Harrier to place itself among the top three passenger vehicle manufacturers on a sustainable basis, a top company executive said.The company, which has been working on a strategy to revive its fortunes in the passenger vehicle (PV) segment for the last couple of years, now believes it has the products and scale to be among the leaders in the segment.

» Post a FREE Classified Advertisement
Inviting Real Estate Agents, Job Placements Agents, Educational Institutes, Software Service Providers, Real Estate Builders, Marriage Bureaus, Travel Agents, Restaurant Owners, Health & Fitness Centers and other Local Businesses to Post a FREE Classified Advertisement on Cootera.com Classifieds Website.
Jobs in India India Real Estate Automobiles Matrimonials Beauty & Fitness

Add a comment for State Bank of India to shut 9 foreign offices as part of rationalisation
Please only use this form to enter comments on the above company. All comments are reviewed before they are displayed on the web site. Not all comments may be displayed. Check back with us to see if your comments have been displayed.
If you want us to email the comments posted by users, please Subscribe by email
Name*
Comments*
Security Code*
 

Be the first person to write a business review for State Bank of India to shut 9 foreign offices as part of rationalisation

Most Read News

YES Bank's asset management arm enters MF biz, gets Sebi nod for 2 schemes

Sensex drops over 100 pts on weak global cues, rising crude prices

SBI: Expect 40% return on stock over one-year period

Infosys inaugurates new technology hub in US, hires over 7,000 workers

Tata Nexon gets 5 stars for safety from NCAP

More India News

  India Web Directory
Business Profiles
Automotive Directory
IT/ITES/BPO Directory
Hotel Directory
Health Directory
Business Directory
Gems & Jewellery
Education Directory
Real Estate Directory
Agriculture Directory
Logistics Directory
Yellow Pages
NRI Guide
Photo Galleries
Global Web Directory
*** FREE India Classifieds
Order Premium Listings
Submit a Site
Business Reviews
Home
About us
Link to us
Advertise
Contact us
Google Search Keywords: India Catalog, IndiaCatalog, India Web Directory
    © 1999 - 2018 IndiaCatalog.com
    All Rights Reserved
Privacy Statement