Bank of India has upgraded its Representative Office in the southern city of Shenzhen into a full-fledged branch, a month ahead of China's opening up of its banking sector to foreign competition.
The China Banking Regulatory Commission, China's banking watchdog, has granted approval for converting the Representative Office in Shenzhen into a full-fledged bank, Branch Manager S Krishnamurthy said.
BOI had established the Shenzhen Representative office in 2003.
The Shenzhen branch has been permitted to handle foreign currency business for Chinese and foreign individuals and companies.
The public transaction at the branch is expected to start within two weeks once the on-line reporting system with Chinese banking institutions are set up.
The BOI has brought in a capital of about $25 million. The bank has also received the necessary approvals from the local authorities, Krishnamurthy said.
The bank has appointed Chinese staff and moved into a new premises in the booming Chinese city which has a number of Indian businesses and trading houses. Shenzhen is close to Hong Kong.
The Shenzhen branch of BOI is the first Indian bank to open a branch in Guangdong province, one of China's engines of growth.
BOI is the second Indian bank after State Bank of India, Shanghai to open a branch in China. BOI also has a Representative Office in Beijing, which was established in May this year.
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