State Bank of India has acquired a majority stake in Global Trade Finance Limited, a company engaged primarily in extending factoring services. Global Trade is one of the largest players in the Indian market, having close to 40% market share. State Bank has acquired the stakes of IFC Washington, Exim Bank and Fim Bank Malta in the company.

The acquisition is part of SBI’s overall strategy to be able to offer a full bouquet of services to its very large and diverse client base. The Bank is also the majority stakeholder in an existing company- SBI Factors and Commercial Services Pvt. Ltd,the first factoring company in India established in April 1991, which has mainly been focusing on domestic factoring. Global Trade has been extending export factoring services to its customers and is the largest export factor in the country with a market share of 70%. With this acquisition, State Bank expects both companies to complement each other and help SBI to consolidate its leadership in both SME business and export financing, where State Bank has traditionally had a strong presence. SBI’s strong domestic and international presence and its strong brand equity are also expected to benefit the newly acquired company.

Sourced From: Adfactors Public Relations Pvt Ltd

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