RBI recommends SBI, BoI for Pakistan foray

The Reserve Bank of India has recommended the names of State Bank of India (SBI) and Bank of India (BoI) to its Pakistani counterpart for allowing them to open of branches in that country.

Likewise, Pakistan-based lenders Habib Bank, National Bank of Pakistan and United Bank have are planning to open branches in India.

"RBI has proposed to State Bank of Pakistan the names of SBI and BoI for opening their branches in Pakistan," Pawan Kumar Bansal, minister of state in the ministry of finance told Lok Sabha today.

An understanding has been reached between the RBI and the State Bank of Pakistan for granting permission to open two branches of banks from India and Pakistan in each other's country, on a reciprocal basis.

The specific banks to be permitted to open the branches would be mutually agreed upon by RBI and SBP keeping in view of their respective regulatory policies and procedures.