4-5 banks in Pakistan bid for India operations

Pakistan’s central bank has said around four to five Pakistani banks were interested in setting up branches in India and were waiting for some movement in this area between the two neighbouring countries. “It is very unfortunate there is no movement with regard to the business and banking side between two countries. Once the environment is more conducive, I am sure we both will have the opportunity to learn together. There are a number of banks which are very interested in coming to work in India,” State Bank of Pakistan deputy governor Saeed Ahmad told PTI.

In August 2012, both countries had agreed to issue full banking licenses to two banks from each country. State Bank of India and Bank of India had their branches in Karachi and Lahore till 1965, when they were forced to close down after the war between the two countries.

“We informally have been asked by four-five major banks but since there has been no opening up as such, no formal application has come,” said Mr Ahmad.

Minister of state for finance Jayant Sinha recently said in the Lok Sabha that the Reserve Bank of India had told the government that only two banks of Pakistan, Muslim Commercial Bank Ltd and United Bank Ltd, had applied for permission for a banking presence in India.