The State Bank of India (SBI) has announced that it is restructuring its business operations in the UK starting from April 2018 onwards. As per the strategic transformation, SBI will soon operate under the subsidiary model by the name of State Bank of India UK in order to comply with the capital requirements set forth by the Bank of England.
In its statement, SBI noted that this move will ensure greater protection for its depositors. As of now, SBI has various business entities in different parts of the UK and these entities operate as the overseas branches of the bank. Following this move, all these branches in the UK will come under the UK-incorporated banking subsidiary of SBI.
SBI’s Regional Head for UK Sanjiv Chadha stated that there will be no visible change to the banking operation in the UK. The name of the bank will be changed to SBI UK Ltd. The 12 branches located in different parts of the UK will continue to operate as the branches of SBI UK Ltd. He added that this move marks a great strategic shift with the focus on the UK market.
Following the transformation, SBI hopes to do more business in the UK and expand the products that are specifically designed for the UK market.Chadha also noted that the capital will be ring-fenced under the subsidiary model, and this will bring a lot of comfort to the operations in the UK.
The expansion by SBI was welcomed by the City of London Corporation with a vote of confidence. Moreover, this move by India’s largest lender also endorses London as the financial capital of the world.
SBI currently operates 7 branches in London. Its remaining 5 branches are located in different cities – Manchester, Birmingham, Coventry, Wolverhampton, and Leicester. All these cities have a great diaspora of the Indian population. SBI noted that while its Indian customers will remain the heart of its operations, it will also focus on expanding its operations to other local customers in the UK.