State Bank of India
To Expand China Branch
Beijing, Sept 28, 2004
PTI
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 here today.
In this connection, SBI chairman A K Purwar met with senior officials
of the China Banking Regulatory Commission (CBRC), the nation's banking
watchdog, here yesterday and discussed issues concerned, the sources
told PTI.
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.
Meanwhile, the CBRC, in a statement today, promised to develop more
favourable conditions to further open its banking business.