SBI plans to re-enter Pakistan

State Bank of India (SBI) is planning to re-enter Pakistan, where it had a presence before 1965. The bank is also looking at joint ventures to enter into other financial services such as mutual fund and insurance in other south Asian countries.

"We applied to the Reserve Bank of India for permission to open a branch in Pakistan. Over the next three years, we plan to increase our branches in the Saarc region to 27 from the present seven," chairman A K Purwar said on the sidelines of the Saarc Business Conclave organised by Ficci. The bank plans to open more branches in Bangladesh, Nepal, Sri Lanka and Maldives.

On the interest rate front, Purwar said there was a definite upward pressure on short-term interest rates after the RBI had raised its repo and reverse repo rates by 0.25 per cent.

"We are examining the situation on whether on whether or not to raise the short term lending and deposit rates," he said.

Besides banking, SBI is also considering joint ventures to expand merchant banking activities. "We would look at joint ventures with strong local players in the Saarc region for entering into the mutual fund, insurance and credit card business," Purwar said.

"We would first like to open a branch and know the country," Purwar said. Purwar said, "We are focusing our overseas growth in the Asian and African region but would look at opportunities anywhere in the world." SBI has acquired mid-sized banks in Mauritius, Indonesia and Nigeria this year.