SBI to pay $8 M for 51 percent stake in Mauritius bank

By agencies   |   Tuesday, 08 February 2005, 20:30 IST
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MUMBAI: As its first step towards becoming a global bank, the State Bank of India will acquire 51 percent stake in Mauritius based Indian Ocean International Bank Ltd (IOIB) for about $8 million and integrate it with SBI's international business to focus on retail segment. The Country's largest commercial bank group would also continue to look at opportunities for acquisition in Africa and Asia, SBI chairman A K Purwar said. ‘About $8 million would be paid for acquiring a majority stake in IOIB, which will become a subsidiary of SBI with a representation on the board, Purwar said here adding, the agreement for acquiring the stake was signed last week. "SBI already has operations in Mauritius and acquisition will strengthen our presence in the island country, especially in the retail sector," he said. IOIB, retail-banking outfit, was founded in 1978 and has about 150 employees on its rolls. It presently has a market share of 7-10 per cent.