You would no doubt go for the strongest, soundest and most reliable bank;
the bank with the latest Banking Technology and with a proven track record of excellence in Customer Care; the Bank for the Top Brass among local and international community. STATE BANK would then be YOUR BANK in Mauritius.
 STRATEGY |
| INTERVIEWOF MR M.K.T REDDY DEPUTY CHAIRMAN OF
THE STATE BANK OF MAURITIUS |
26th NOVEMBER 1998.
Q. There is no doubt that the State Bank is very well known in
Mauritius, could you give to our readers a brief historical background of your
institution?
A. State Bank started its operation 25 years back, and our main
objective was to spread our banking facilities at that time throughout the country. Today
we command around 30 % of the market share and we operate as a big financial service
institution offering commercial banking, leasing, stockbrocking, investment banking, share
registry and asset management services and not merely as a bank. In 1973 the Government of
Mauritius wholly owned the bank directly and through its parastatal bodies. In 1989/90 the
Bank started automating its operations and by 1992, computerized all our 50 branches
operating on a real time basis. In 1995, the bank was privatized and about 40 % of the
shareholdings were sold to the public. The bank was listed on the Mauritius Stock Exchange
on June 1995. Presently the Government directly or indirectly holds less than 40 %
shareholding in the bank. In terms of profitability we are number one and we are in a
second position as far as market share is concerned. The bank has drawn growth mainly from
the confidence of the public. The Bank has changed the banking habits of its customers
from significantly from branch channel to 24-hour electronic banking channels.
Q. Apart from your strategy to invest in subsidiaries and associates to
provide a comprehensive wide range of financial services, could you elaborate more on
this?
A. As a financial institution we wish to provide universal banking
under one roof, like asset management, stockbroking and leasing and we tried to build up
these capabilities through alliances with foreign partners. We have a strategic alliance
with Nedcor Bank of South Africa, a major financial group, it has 571 branches and
international activities in Europe, the USA, Asia besides Africa. Besides giving State
Bank of Mauritius international reach, this would further contribute in making the
Mauritius Financial sector a cornerstone for developing cross-border business between the
Indian Ocean, Africa and Asia. Our deal with the Nedcor group of South Africa will
facilitate business development, bring in skilled development and transfer of skills and
we also want to offer a bigger geographical coverage to our customers. |
Q. In which countries do you have branches and are you also involved in
the regional development of Mauritius like Madagascar, Mozambique an Seychelles?
A. SBM has a network of 50 branches. It is the first Mauritian bank and
only bank in Africa to have three full-fledged branches in India; we plan to open a fourth
branch in the next financial year. We also have a subsidiary bank in Madagascar that
started operations early this year. Through our strategic partner Nedcor Bank we plan to
have joint ventures in some three to four territories in the african continent.
Q. Would you say that Mauritius enjoys a well-developed and fully
operational financial system, if yes what are your reasons, if no, what should be done to
improve the financial system?
A. The actual financial system of Mauritius in this part of the world
is well developped but I still believe that there is room for improvement. We need to
eliminate the difference between the onshore and offshore activities and we need to be
able to work/ promote for our own markets and markets developments.
Q. Could tell us more about your partnership with the American banks?
A. Our partnership with the American banks is intended to place
Mauritius as a potential market, which can be their gateway to Africa and Asia. We can
offer a lot of advantages; we are a bilingual society.
Q. Since you are ranked first or second in the Mauritius financial
system, what are your main competitive advantages against your competitors?
A. We want to be accessible and make banking convenient and friendly to
all our customers. State Bank is the leader in electronic banking and our 50 branches are
on line with a 24-hour service. It has 80 ATMs including one in Rodrigues and thirteen off
sites. All branches are connected by e-mail. State Bank was the first bank in Africa to
issue debit cards in Mauritius. To facilitate direct banking between the bank and its
clients, State Bank has also introduced P.C. banking s called Corporate Direct and Phone
Banking. Our concept is anytime and anywhere.
Q : There is no doubt that the State Bank of Mauritius enjoys a
very good reputation, how did you manage personnaly this reputation ?
A :I don’t think I managed it in the real sense, I only have
only provided the leadership. All the credit goes to my team, it is these teams that are
more important. Usually people think we are managed by the State (Government of Mauritius)
, we had to get the public to get over this perception, it that’s our biggest
challenge.
Q : To put it in another way, what has been the secret of your
style of management ?
A : There is no secrecy ; one should demonstrate
transparency, provide leadership skills and practice first in whatever one believes.
Q. As a final issue, what will be your final message to our readers?
A. Mauritius has a lot to offer in terms of infrastructure, a very dynamic government, good legislative part and democratic principles and with these key factors we stand good chances of increasing trade with other countries particularly free port. |
