"SBI would be acquiring one of the smaller banks in US for which it has initiated due-diligence through a consultancy firm," said, Chandan Bhattacharya, managing director.

The country's largest public sector bank hopes to complete the first acquisition by March 2005. "SBI might acquire all the five banks if found worthwhile," Bhattacharya added.

"Due diligence at the five banks by a foreign consultancy firm are at various stages and is expected to be completed over the next couple of weeks," he added.

"It takes normally two to three months for completing due-diligence of each bank and a few more weeks to complete the process," he said.

"The consultancy firm initiated the process a couple of months back," the MD informed.

"SBI will necessarily be holding management stake in all the banks which it intends to acquire. This could be 51 per cent or more depending on the bank's holding pattern," Bhattacharya said.

Talks with one of the banks were at an advanced stage, which is now hinging on the outcome of the report. The idea behind the buyouts was to enhance SBI's presence overseas where there are large Indian populace.

In a parallel development, SBI has firmed up plans of enhancing its presence to 70 locations across 36 countries by end of the current fiscal.

It will open a third branch in Bangladesh, and additional branches in Indonesia, Malaysia, Thailand, Myanmar. It will also open representative offices in Angola, and a subsidiary in Botsowana.

SBI has, however, ruled out acquisitions back home. "SBI is not looking at any takeover at the moment. SBI would take over a bank only if it is offered. That too would depend on the technology platform as well as other factors that could lead to synergies," the managing director said.

On whether SBI would take over banks such as UCO,  which was keen on being merged with other larger banks, he said, "SBI would take a view on asset quality and financial strengths of the banks, if offered."