Rajnish Kumar, chief executive of British operations, says SBI's commitment to its branch network is all about offering customers a choice of how they access their money and supporting communities.

SBI is bucking the trend among the High Street banking giants. More than 180 branches were closed last year by Lloyds TSB, Santander, Northern Rock, Royal Bank of Scotland and HSBC.

"We want to be a community-based bank where customers value our service and develop a long-term relationship with the brand. In Wolverhampton, where we will open this month, politicians and businesses have told us it is good news for the community and our presence will boost the High Street," Kumar said.

"For us it is not an either/or situation when it comes to branches. We want to be available for our customers through all channels — the internet, ATMs and branches."

SBI has focused its efforts on the retail savings market since opening up in Britain in 2002. It has an instant-access account paying two per cent and a one-year bond at three per cent.

The bank also offers a current account that allows free remittances to India and it hopes to move into mortgages and personal loan in the first quarter of next year.

SBI already has five branches in London, including its head office in the City and in East Ham, which was the last one to open in February.

It also has branches in Leicester, Birmingham and Manchester. The focus for future branches will be in areas with big Asian populations, but Kumar says SBI wants to be seen as welcoming for all.

Other challengers

Other smaller challengers are slowly but surely getting a foothold in the market with branch expansion. India's ICICI bank and Bank of Baroda as well as Islamic Bank of Britain have targeted areas with big Asian populations. ICICI has 11 branches while Bank of Baroda has ten, mostly in London.

New entrant Metro Bank has opened eight branches since its British launch a year ago. Swedish-owned Handelsbanken has more than 100 branches in Britain.

Derek French of the Campaign for Community Banking, which lobbies against branch closures and supports moves to make banks share branches, says: ‘It is good to see State Bank of India opening more High Street branches. So many branch relocations have been in business parks and out-of-town retail centres.'

* 10: SBI branches in Britain by the month end
* 11: the number of ICICI branches in Britain
* 180: the bank branches closed last year in Britain