State Bank of India, one of the top 50 global banks, has set its eyes on growing its international operations. Nepal will see more branches of SBI opening in the near future. SBI is also considering options of re-entering Vietnam.
SBI has laid down a three-year term to implement these plans with the aim to grow the international operations to 15% of the total business. Currently, SBI’s international business comprises 11% of the total operations.
At present, there are 88 bank branches in Nepal, and SBI plans on taking this number up to a total of 100 in the next one year. The bank has a presence in 35 countries around the world, although 206 offices are in Asia.
SBI had conducted operations previously in Vietnam through an office, but this closed down a long time ago. Taking into consideration the rapidly growing trade relations between Vietnam and India, SBI is viewing a possible partnership to re-enter the Southeast Asian nation.
SBI is also targeting regional banks in Japan in order to provide banking services and products that will cater to small and medium-sized companies that have plans to conduct manufacturing operations in India that will in turn cater to other Japanese companies that exist in the country such as the auto manufacturers.
Among its plans, there is one to set up a new subsidiary to provide retail operations in the United Kingdom. This subsidiary is expected to start functioning somewhere around January to March 2018.
SBI is exercising caution with its international expansion and looking more at the risk aspect rather than profitability. The bank also has plans to shut down a number of branches that are not profitable.
Holding assets of more than $500 billion this year, SBI shot up to one of the top 50 global banks. This became possible after the bank consolidated its five subsidiary banks.