Date:30/09/2005 URL: http://www.thehindubusinessline.com/2005/09/30/stories/2005093002170600.htm

Back SBI seeks stock split in associates

Our Bureau

Mumbai , Sept. 29

STATE Bank of India (SBI) has approached the Union Government for a stock split in its three associate banks and also to do away with the cap on individual shareholding limits in these banks, Mr A. K. Purwar, Chairman, SBI, said.

Currently, individual shareholders are not allowed to hold more than 200 shares in SBI's three associate banks, which are listed. Mr Purwar said the proposal was under "close observation."

Speaking to newspersons at the launch of SBI Caps' new broking subsidiary, Mr Purwar said interest rates looked stable in the short term. Inflation was still in the manageable range and there was sufficient liquidity in the system, he said.

The Indian economy has been growing way above six per cent since 2003 and the undertone was strong, the Chairman said. "We are at very interesting times. There is huge amount of investment, challenge and opportunity," he said.

On SBI's growth this fiscal, Mr Purwar said the retail sector was growing at around 35-38 per cent, agriculture at 34 per cent and mid-sized companies at 12 per cent. "All sectors are doing well," he said. Though deposits were growing, the bank was planning to focus more aggressively on deposit mobilisation, he said.

Mr Purwar added that SBI was looking at acquiring banks in Asia and Africa and was also open to domestic acquisitions.