SBI plans 120 branches in Gujarat

These will come up by the end of March 2008.

The State Bank of India plans to open around 120 branches in Gujarat by the end of March 2008, and has received the nod for the same from the apex bank.

During the financial year 2008-09, SBI will focus on agriculture, small and medium enterprises (SMEs) and personal banking. Till October 2007, the bank registered a growth of 48 per cent in advances and 25.6 per cent in deposits.

SBI requires an additional capital of Rs 50,000 crore to Rs 1 lakh crore over the next 5 years. The bank has already planned a rights issue of Rs 10,000-Rs 20,000 crore, which it intends to raise through the capital market within the financial year 2007-08, apart from government funding and retained profits.

Citing reasons from Basel II norms, revised accounting standards AS-15, and possible mergers of associate bank branches, OP Bhatt, chairman, said, "We hope to receive approval from the Government before mid December to hit the market within the current fiscal. But, if we get the approval later, we would be able to raise the capital from the market only in the next financial year."

SBI is hopeful to end the merger process of State Bank of Saurashtra (SBS) by March 2008, following which the bank intends to wrap up the merger of State Bank of Maharashtra (SBM).

Declining any immediate plans to merge banks outside the group, Bhatt said, "The SBS merger is an experiment on our side to gauge our rate of success. Once through with these mergers successfully, we will go forward with the merger of our associate bank branches."