State Bank of India will move its 12 U.K. branches under a newly incorporated subsidiary in the U.K., the Press Trust of India reported Feb. 26.
The Indian lender will make the move to make sure it complies with the Bank of England's directive for foreign banks to set up local entities to protect U.K. depositors from fluctuations in foreign markets.
The bank's U.K. operations will come under State Bank of India UK Ltd. beginning April 1.
Sanjiv Chadha, State Bank of India's regional head for the U.K., noted that there will be no disruption to customer service channels due to the restructure. He added that the move also reflects a strategic shift for the Indian lender, with a greater focus on the U.K. market.
