Australia banking

NEW South Wales will sell its wholly owned State Bank of NSW in a public trade sale, but has excluded Australia's four major commercial banks from bidding.

The bank is the fifth-largest commercial bank in the country, with assets of A$19.1 billion (about HK$98.15 billion) on September 30, including about $12 billion in business and consumer loans.

The state government had previously said it planned to sell the bank before the end of next year. Analysts estimate the bank will attract bids of about $500 million.

''The exclusion of the major banks will ensure that existing and future employment prospects for State Bank staff are maintained,'' New South Wales Premier John Fahey said in a statement announcing the sale yesterday.

The sale would be limited to regional banks, non-bank financial institutions and foreign banks, he said.

State Bank last week posted a net loss of $74.6 million for the year ended September 30 on provisions for bad and doubtful debts of $690 million.