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S&P's affirms SBI's B short-term foreign currency rating

International credit rating agency Standard and Poor's today affirmed its 'B' short-term foreign currency rating to State Bank of India.

S&P's also stated that it had not assigned public local currency ratings or foreign currency long term rating to SBI.

''The B short-term foreign currency rating on SBI is supported by its reasonably sound capital position, dominance across all segments in the country's banking market and 59 per cent ownership of the bank by the RBI'', the S&P's release said.

SBI has been spreading its wings of late. Last Monday, SBI opened a representative office in Sydney, Australia. This is SBI's 51st overseas office, 13th representative office and first office in the Oceania region.

The Sydney operation would focus on being a facilitator for expanding and reinforcing the existing banking arrangements including those for trade-related credit for Indian imports from and exports to Australia with ancillary services like letters of credit, guarantees, project finance for joint ventures, bill negotiations and collections/remittances.

The bank hopes to strengthen its relations with 12 existing correspondent banks through the representative office.

The office will have marketing and liaison as its thrust area and will be a forerunner for a full operating office (either a branch or subsidiary), in accordance to Australian banking regulations. The representative office will also have New Zealand under it.

UNI

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