The State Bank of India hopes to upgrade its Representative Office in Shanghai soon into a full-fledged branch and commence normal banking operations by early next year, sources said on Tuesday.
In this connection, SBI chairman A K Purwar met with senior officials of the China Banking Regulatory Commission, the nation's banking watchdog, and discussed issues concerned, the sources said.
SBI, which opened its Representative Office in Shanghai, China's largest city and commercial capital, in 1997, has submitted relevant papers to the People's Bank of China, the apex bank, long back.
Though SBI could have applied for regular banking operations in China two years after setting up the representative Office, it apparently waited till Beijing became a full-fledged member of the World Trade Organisation in 2001 so as to benefit from the relaxed entry norms.
Under the terms of China's WTO entry, the country is bound to open up its entire banking system to foreign competition by 2006.
As of now, the SBI Shanghai office is allowed only limited functions like establishing contacts, providing trade information about India, consultancy and facilitating the opening of Non-Resident Indian accounts.
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