State Bank of India (SBI) chairman O P Bhatt on Monday said that the bank will make available at least Rs 400 crore to Indian companies and NRIs for merger and acquisition (M&A) operations abroad. SBI has already funded Indian companies with over Rs 100 crore during the first quarter of the current fiscal for M&A operations at the global level, he added.
?We are targeting to fund Indian companies with at least Rs 100 crore in each quarter for M&A operations abroad,? Bhatt told FE.
The SBI chairman said the bank was strengthening its global operations in view of the growing investments by Indian companies abroad and NRIs in India and other countries.
Stating that SBI has 84 offices abroad, he said that the plans and strategies were now being reoriented.
Bhatt said that SBI needed about Rs 10,000 crore this fiscal. Modalities for raising the fund was now being discussed with the Central government. The fund was required to make SBI compliant of the Basel II norms and international accounting practices. The amount was also needed for entering into general insurance business, he added.
SBI has short-listed three foreign companies from Australia, Europe and the US for firming up of a joint venture to enter into general insurance business.
?We would be able to announce the name of our partner in the general insurance venture by the next 3 to 6 months,? said Bhatt. He, however, clarified that SBI would be the major promoter in the JV with at least a 74% stake.
Dwelling on the issue of merger of the seven associate banks with SBI, he said steps have been initiated for the merger of SBI Saurashtra with itself.