State Bank of India is planning a joint venture with a reputed IT company in a bid to bring its technology level at par with the private and foreign banks.

"SBI is planning a JV with a reputed IT company. SBI is identifying a suitable partner for the joint venture alliance," Minister of State for Finance Anandrao V Dasul informed the Lok Sabha on Friday.

He said public sector banks are facing competition from foreign and private banks due to technological advancement.

"In order to meet this competition, it is necessary that efforts are mounted to bring the level of technology in PSU banks at par with their competitors," Adsul said, adding the challenge for SBI is still bigger because of its large network of branches, some in the remotest corners of the country.

Networking of branches and maintenance of equipments would require "substantial effort" and any in-house effort will not only be complex but also time consuming, he said.

"SBI lacks internal capability to achieve all this. The JV company is being seen as the vehicle, which will give a push to the current as well as future technology initiatives of the bank," Adsul said.

In due course, he said, "The IT company will also take up business activities independent of SBI, catering to the banking and financial services requirements of the industry in India as well as in near and far geographies."