India, China to allow banks of other country to open branches

More Indian banks will be able to open branches in China, while lenders from the communist nation would be permitted to have operations in India. Already some Indian banks, including SBI and Bank of Baroda, have branches in China.

More Indian banks will be able to open branches in China, while lenders from the communist nation would be permitted to have operations in India. Already some Indian banks, including SBI and Bank of Baroda, have branches in China.

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China does not have any banking presence in India. The Reserve Bank of India and China Banking Regulatory Commission concluded a memorandum of understanding to increase banking and financial cooperation.

"India and China also agreed to grant permission to the banks of the other country to open branches and representative offices," a joint statement issued today after talks between Prime Minister Manmohan Singh and Chinese Premier Wen Jiabao said.

"Modalities will be worked out by the concerned authorities," it said. China Development Bank and ICICI Bank signed a USD 400 million facility agreement yesterday while Bank of China inked a MoU with IDBI. Exim Bank Chairman and Managing Director TCA Ranganathan and China Development Bank Cooperation Vice-Governor Gao Jian signed a MOU to boost bilateral trade between the two countries.