SBI aims at retaining 15% IMD money

State Bank of India (SBI) is expected to retain about 15% of the $7.3 billion that is being repaid to NRI investors of India Millennium Deposits (IMDs).

"We will aim at retaining 15% of the IMD proceeds, which would be over Rs 4,000 crore," A K Purwar, chairman of SBI, said after meeting finance minister P Chidambaram today.

Purwar admitted that there was pressure on short-term interest rates due to the redemption of IMDs. "But the situation has eased," he added.