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SBI To Shut Nine Overseas Offices For Rationalisation


The banking sector is under severe pressure and the state-run major SBI is no exception, though the bank expects to recover soon from the crisis, it is taking all possible steps to achieve it at a much faster pace.

SBI To Shut Nine Overseas Offices For Rationalisation

And as part of the earlier PSB Manthan exercise deliberated in November last years, PSB lenders were asked to rationalize the operations at the overseas level.

The lender with operations in as many as 36 nations and having 190 branches in total has recently shut down six branches in the foreign market and is close on the heels to wrap up 9 more overseas branches.

MD of the bank is cited in an agency report as saying, "Capital is generally a constraint for most of the bank sites. Obviously, you want to use your capital at the place where it is best utilised. So, as a part of our foreign branch rationalisation, we have closed about six branches already in the last two years. There are nine more branches under the process to be closed down".

In some of the nations including Bangladesh and South Africa SBI does not have full-fledged branches and instead have small and retail branches that need rationalization.

The MD of SBI also added, "Branch rationalisation is an ongoing process. I think every branch has to justify its existence. So unless it is commercially viable, it doesn't make sense for us to be operating particularly in foreign locations".

Read more about: sbi state bank of india
Story first published: Thursday, June 28, 2018, 13:16 [IST]
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