SBI to acquire Kenyan and Indonesian Banks

New Delhi, May 30 (UNI) State Bank of India Chairman A K Purwar today indicated that his Banks will complete acquisition of Giro Commercial Bank of Kenya and PT Bank Indo Monex of Indonesia during the next two months.

"We will acquire these two bank in two months time," Mr Purwar told reporters on the sidelines of a function relating to the Bicentennial celeberations.

The Function was inaugurated by President A P J Abdul Kalam and also addressed by Finance Minister P Chidambaram.

On the purchases made by SBI during the recent crash of stock market, Mr Purwar refused to specify the quantum of purchaes that SBI made.

The SBI Chief,however, said it was a good buying opportunity.

He said purchases were made by dealers on behalf of the bank.

Mr Purwar said the fundamentals of the Indian economy were strong and there was huge credit growth in retail, corporate sector and Small Medium Enterprises(SMEs).

On the falling Rupee, Mr Purwar said the value of the Indian currency was determined by the market and SBI is carrying out its usual operations in the forex market.

An SBI source said the Bank would initially acquire 55 to 60 per cent stake each in these two Banks and would gradually increase its holding.

The source said RBI has given in principle approval, after which due diligence process of the two banks would be carried out.

The Central Bank of Kenya has given its nod for the acquisition, but approval from Indonesia's regulator is awaited, the source said.

UNI GS PV VV1742