Special Correspondent

The purchase consideration is put at Rs. 521 crore

MUMBAI: State Bank India on Thursday decided to acquire a majority stake in Global Trade Finance Ltd (GTFL) — a company promoted by Export-Import Bank of India (Exim Bank) in 2001 — at an aggregate amount of Rs. 520.55 crore.

“State Bank of India has informed the Bombay Stock Exchange that the bank intends to purchase shareholding of EXIM Bank; International Finance Corporation, Washington (IFC); and FIM Bank, Malta (FIM), in Global Trade Finance Ltd. (GTFL), aggregating to 91 per cent of the total shareholding of GTFL, at an aggregate price of Rs. 520.55 crore,” stated a corporate announcement of BSE on Thursday. Approval from the Reserve Bank of India for the purchase is awaited.

As per RBI guidelines, a prior public notice of 30 days is required to be given by the sellers and buyers before effecting the sale or transfer of the ownership of shares or transfer of control.

GTFL is a provider of international factoring, domestic factoring and forfeiting services.

Corporate Reporter writes:

SBI Q3 net up

Meanwhile the bank has reported a sharp rise in its earnings for the third quarter of the financial year 2007-08 on the back of better credit offtake. It has posted a net profit of Rs. 1,808.64 crore for the quarter ended December 31, 2007 as compared to Rs. 1,065. 06 crore in the year-ago period. Total Income has increased to Rs. 15,364 crore from Rs. 11,268.38 crore.

The State Bank Group has reported a net profit after minority interest of Rs. 2,383.66 crore (consolidated) for the quarter ended December 31, 2007 as compared to Rs. 1,524.42 crore in the same period in the previous year. Total income has increased to Rs. 24,380.99 crore from Rs. 17,045.13 crore.