CHANDIGARH: State Bank of India (SBI) has said there will not be any significant impact on its operations in the US after federal agencies asked its subsidiary SBI California not to open new branch in the country without permission.
“In America, physical branches are not that important. Most people…maximum percentage of transactions happen on internet and ATM. They (US authorities) have said your loan book or the physical expansion; you can halt for a while. So, it really does not affect us significantly,” SBI Chairman Pratip Chaudhuri told reporters here.
SBI California has 25 branches, he added.
“(US) Regulators advised us that you please have your house in order. In the bank in US there has been a large number of delinquencies and liquidation and they are worried.
They feel at this point you can carry on (your) business,” he said.
SBI California has been asked by federal agencies not to open a new branch in the US without permission and bolster its compliance with the Bank Secrecy Act.
Meanwhile, SBI Managing Director and Group Executive in-charge of international operations Hemant Contractor in Mumbai told PTI: “There is absolutely no fine and no instances of mismanagement on our part. This is a minor issue. A section of the media here has blown the issue out of proportion and that there is nothing much in contravention to the regulatory requirements.”
“Already we have taken a number of steps and are doing more to improve the overall operations and meet the regulatory requirements on the hiring soon, including inducting banking secrecy executives. We hope to come out of the consent mechanism as fast as possible,” he added. -PTI
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