indian_foxhound
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India has called on China to expand banking links
between the two countries and to enhance
licensing procedures, in an effort to create a
more conducive environment for companies --
on both sides of the border -- still grappling with
financial barriers despite rapid growth in trade and mutual investments. Union Minister of State for Finance Namo Narain
Meena, who was in this northeastern port city
on Tuesday to open the State Bank of Indias
(SBI) second branch in China, the only Indian
bank which has been able to do so, made a pitch
to Chinese regulators to help enable the ten Indian banks that currently have a presence in
the country to open branch operations. "Foreign bank licensing policy is gradual in China,
and all these banks are at various stages of
establishing their operations, he said. It is
hoped that other Indian banks that have fulfilled
conditions set for foreign banks in mainland
China also graduate to opening branch operations at an early date. SBI, which opened its first branch in Shanghai in
2006 almost a decade after it set up a
representative office received the green light
from regulators to open its second Chinese
branch in this thriving northeastern port city,
through which much of Indias trade with northern China is routed. The Shanghai branch
was allowed to start operations in the local
Renminbi (RMB) currency in 2010. "The success achieved at the Shanghai branch
has encouraged us to strengthen our presence in
China by upgrading our representative office in
Tianjin to a branch, said SBI Managing Director
Hemant Contractor. The bank works with around
90 Indian companies who trade with China and around 200 Chinese companies. The Tianjin branch, which will open with an
operating capital of 300 million RMB and does not
yet have the approval to work in RMB, will focus
on assisting small and medium companies
located in northern China and try to facilitate
bilateral trade finance, Mr. Contractor said. SBI is the only Indian bank to operate two
branches in China in addition to two branches in
Hong Kong. The Industrial and Commercial Bank
of China (ICBC) is the only Chinese bank with a
branch in India, although the ICBC has expressed
interest in opening a second branch in New Delhi and the Bank of China is considering
opening a branch in Mumbai. Banks in both countries have expressed some
frustration at the challenging licensing
procedures on both sides of the border. With
increasing bilateral trade, which has risen from a
couple of billion dollars at the start of the last
decade to $ 74 billion in 2011, when China became Indias biggest trading partner, the need
for expanded banking relations has risen,
officials say. Trade fell to $ 66 billion last year on
account of the downturn, but is expected to
meet a $ 100 billion target set for 2015. Ambassador to China S. Jaishankar said India had
now become the largest market for project
exports from China, with over $ 55 billion worth
of projects from infrastructure to power
under execution. In this background, expanded banking relations
between India and China is very important, he
said. The Reserve Bank of India and the China
Banking Regulatory Commission have already
reached agreement to expedite processing of
licenses... It is only when our banks are more connected that we can be said to have achieved
the full spectrum relationship that is natural to
neighbours.
http://www.thehindu.com/business/in...-banking-links-with-china/article4431781.ece/
between the two countries and to enhance
licensing procedures, in an effort to create a
more conducive environment for companies --
on both sides of the border -- still grappling with
financial barriers despite rapid growth in trade and mutual investments. Union Minister of State for Finance Namo Narain
Meena, who was in this northeastern port city
on Tuesday to open the State Bank of Indias
(SBI) second branch in China, the only Indian
bank which has been able to do so, made a pitch
to Chinese regulators to help enable the ten Indian banks that currently have a presence in
the country to open branch operations. "Foreign bank licensing policy is gradual in China,
and all these banks are at various stages of
establishing their operations, he said. It is
hoped that other Indian banks that have fulfilled
conditions set for foreign banks in mainland
China also graduate to opening branch operations at an early date. SBI, which opened its first branch in Shanghai in
2006 almost a decade after it set up a
representative office received the green light
from regulators to open its second Chinese
branch in this thriving northeastern port city,
through which much of Indias trade with northern China is routed. The Shanghai branch
was allowed to start operations in the local
Renminbi (RMB) currency in 2010. "The success achieved at the Shanghai branch
has encouraged us to strengthen our presence in
China by upgrading our representative office in
Tianjin to a branch, said SBI Managing Director
Hemant Contractor. The bank works with around
90 Indian companies who trade with China and around 200 Chinese companies. The Tianjin branch, which will open with an
operating capital of 300 million RMB and does not
yet have the approval to work in RMB, will focus
on assisting small and medium companies
located in northern China and try to facilitate
bilateral trade finance, Mr. Contractor said. SBI is the only Indian bank to operate two
branches in China in addition to two branches in
Hong Kong. The Industrial and Commercial Bank
of China (ICBC) is the only Chinese bank with a
branch in India, although the ICBC has expressed
interest in opening a second branch in New Delhi and the Bank of China is considering
opening a branch in Mumbai. Banks in both countries have expressed some
frustration at the challenging licensing
procedures on both sides of the border. With
increasing bilateral trade, which has risen from a
couple of billion dollars at the start of the last
decade to $ 74 billion in 2011, when China became Indias biggest trading partner, the need
for expanded banking relations has risen,
officials say. Trade fell to $ 66 billion last year on
account of the downturn, but is expected to
meet a $ 100 billion target set for 2015. Ambassador to China S. Jaishankar said India had
now become the largest market for project
exports from China, with over $ 55 billion worth
of projects from infrastructure to power
under execution. In this background, expanded banking relations
between India and China is very important, he
said. The Reserve Bank of India and the China
Banking Regulatory Commission have already
reached agreement to expedite processing of
licenses... It is only when our banks are more connected that we can be said to have achieved
the full spectrum relationship that is natural to
neighbours.
http://www.thehindu.com/business/in...-banking-links-with-china/article4431781.ece/
