Date:08/02/2005 URL: http://www.thehindubusinessline.com/2005/02/08/stories/2005020802050600.htm

Back State Bank to pay $8 million for stake in Mauritius bank

Our Bureau

Mumbai , Feb. 7

STATE Bank of India will pay $8 million (around Rs 35 crore) for the acquisition of a 51 per cent stake in the Mauritius-based Indian Ocean International Bank Ltd (IOIB).

Post acquisition, IOIB will become a subsidiary of SBI.

SBI also plans to integrate the operations of the acquired entity with its existing operations in Mauritius in order to strengthen SBI's presence in the retail sector in the country, said Mr A.K. Purwar, speaking to newspersons on the sidelines of the third international conference on communications convergence, here today.

SBI is also looking to pick up stakes in banks located in Africa and Asia, he said.

IOIB's retail banking division presently has a market share of 7-10 per cent in Mauritius.

The bank also plans to introduce a bouquet of products to retain funds from Indian Millennium Deposits, which would mature in December, he said.