State Bank of India keeps faith with UK
State Bank of India UK (SBI UK) has launched its UK subsidiary as it shows off its devotion to the country amidst the tedious Brexit negotiations.
The subsidiary, called State Bank of India (UK) Limited, is backed with an initial capital commitment of £225 million from its parent, State Bank of India (SBI).
Sanjiv Chadha, SBI’s regional head for the UK, says: “The launch of our UK subsidiary shows our commitment to operating in the UK market. Many banks primarily see the UK as the gateway to Europe and are fazed by the impact of Brexit. Our calculus is different. We see London as the ideal launch pad for a global presence and have full faith that, despite Brexit, London will remain the premier international financial centre.”
It will be the “first foreign bank in the UK to ringfence its retail division from its wholesale business” – and follows on from Barclays’ recent High Court approval to ringfence its retail activities.
SBI, the largest bank in India, has had a presence in the UK through this dedicated branch in London – SBI UK – for over 90 years. The latter works with consumers and corporates, and provides savings/deposit accounts, lending and remittances.
In 2017, SBI formed a new entity in the UK – a subsidiary (rather than a branch) – and received a banking licence for it.
For its core banking software, SBI is a major user of Infosys’ Finacle across its international network, including in the UK.
Here’s a comprehensive list of the known UK challengers to date and the technology they are using.