"Being India's largest bank, it is only befitting that SBI should be the first Indian bank to open a branch in mainland China," SBI Chairman O P Bhatt said at a reception held in Shanghai in China's largest city and commercial hub.
Noting that India-China bilateral trade and investment opportunities have rapidly risen to record levels since 1997 when SBI established its representative office in Shanghai.
Bhatt said the bank was very confident of operating in the huge Chinese market, which is opening up to foreign competition and expansion.
He noted that India-China bilateral trade in 2005 was worth over $18 billion and during the first six months of 2006, the trade volume has already touched $11.45 billion, indicating that this year the total foreign trade between the two Asian giants would cross $20 billion.
"The opening of the Shanghai branch would go a long way in facilitating trade and investment flows between our two great nations," he said.
A SBI Representative Office has been functioning in Shanghai since 1997. In 2003, SBI filed preliminary application to China Banking Regulatory Commission, the Chinese banking watchdog, for licence to upgrade the RO into a branch.
In 2004, SBI received preliminary clearance from CBRC to apply for the licence. Full-fledged licence was received in early 2006, Bhatt said.
The SBI in China is now in a position to offer one-stop solutions to the Indian business community's specific banking requirements and can offer tailor-made solutions.
The Shanghai branch will also facilitate investment into China and also help international trade transactions, CEO of SBI, Shanghai Branch, T C A Ranganathan said.
