State Bank of India is set for a major restructuring of its business in the UK from April, India’s largest state-owned bank has said. SBI’s UK operations will transform into a subsidiary named State Bank of India UK Limited from April 1, in compliance with wider ring-fencing of capital requirements by the Bank of England. The move will mean that all retail branches of SBI in the UK will fall under a new UK-incorporated banking entity instead of their previous status as overseas branches of the Indian entity.
“While there will be no visible change, the brand changes to State Bank of India UK Limited. The 12 retail branches that we have – seven in London and the rest outside London – will become branches of SBI UK Ltd. Apart from that, if we look at the day to day, there will be no dislocation,” said Sanjiv Chadha, SBI’s Regional Head for UK.
“As a subsidiary, the capital will be ring-fenced and that brings an additional comfort level,” said Chadha.
He highlighted that the restructuring marked a major endorsement for London as a financial capital of the world, despite uncertainties triggered by the 2016 referendum in favor of an exit from the European Union.
There are uncertainties over the passport rights of the UK-based Banks which can at present sell services throughout the 28-member bloc.
The bank says that while the Indian-origin customer base will remain at the heart of its operations, it will use its expansion to cater to the wider UK market as a competitive local bank.