Aung Zaya
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STATE Bank of India opened its first branch in Myanmar on Monday after getting its licence approved by the Central Bank of Myanmar earlier this year.
The opening increased SBI's global presence to 37 countries with 198 branches and offices. The Myanmar branch is the 54th overseas branch of India's largest bank.
Arundhati Bhattacharya, chairman of SBI, said the branch has revived SBI's relationship with Myanmar, as its link with Myanmar dates back to 1861, when the former Bank of Bengal operated its branch in Rangoon.
The presence of SBI would grow bilateral trade and investment to a large extent.
"The idea is we would like to facilitate trade growth, as we are neighbouring countries and there is a land route between the two countries.
"So there is a huge amount of trade that can take place between us.
"Myanmar is a very resource-rich country. It is also one of the fastest growing economies of Southeast Asia.
"So, there are huge opportunities on both sides to improve the trade we do with each other. At this point, this will be the main area of our focus," she said.
The bank also pays special emphasis on supporting industrial growth in Myanmar. Its presence would encourage more trade and local employment.
Likewise, Indian firms would now have a chance to better respond to trade challenges.
The branch would bring US$75 million (Bt2.6 billion) as its initial capital.
"We will be in a position to finance whatever they would like to do. So for both companies and the country, this will be very enabling," she said.
"There are a lot of foreign firms that do not have banking representatives here. We can do business with them."
Siddhartha Sengupta, SBI's deputy managing director for international banking, said the bank would offer products such as corporate banking, trade finance and treasury.
"This is just the beginning for the State Bank of India in Myanmar.
"We are looking at a very strong future in this country, not only between India and Myanmar, but also between Myanmar and the rest of the world.
"The world is looking at Myanmar," he said.
India is the fifth largest trading partner of Myanmar, with two-way trade exceeding $2 billion. The branch opening would facilitate a bigger amount of trade and commerce, he said. The lifting of sanctions against Myanmar would have a very big impact on Myanmar's economy and banking sector.
Aung San Suu Kyi's meeting with the US president has led to a very strong feeling in the market, as the rest of the sanctions will also be gradually lifted, he said.
"Myanmar is very important for us. That is why we opened the branch," he said.
The establishment of SBI's representative office last year played a crucial role in the bank's business expansion, as it marked an expansion in relationship-building with Myanmar authorities, the CBM, local corporations and local important entities.
"It is like a corridor. This corridor is going to be more and more vibrant. It is a linkage to see how we can contribute to the further growth of the country," he said.
Ghanshyam Srivastava, chief executive of SBI's Yangon branch, said the branch opened two accounts on the very first day.
The number is expected to grow significantly in the months to come, thanks to the growing interest of foreign corporations.
"It is a long way for us to go, and we also have a lot of Indian corporate partnerships with us. It is just the beginning of our long journey," he said.
http://www.nationmultimedia.com/asean&beyon/Largest-Indian-bank-enters-Myanmar-30296841.html
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The opening increased SBI's global presence to 37 countries with 198 branches and offices. The Myanmar branch is the 54th overseas branch of India's largest bank.
Arundhati Bhattacharya, chairman of SBI, said the branch has revived SBI's relationship with Myanmar, as its link with Myanmar dates back to 1861, when the former Bank of Bengal operated its branch in Rangoon.
The presence of SBI would grow bilateral trade and investment to a large extent.
"The idea is we would like to facilitate trade growth, as we are neighbouring countries and there is a land route between the two countries.
"So there is a huge amount of trade that can take place between us.
"Myanmar is a very resource-rich country. It is also one of the fastest growing economies of Southeast Asia.
"So, there are huge opportunities on both sides to improve the trade we do with each other. At this point, this will be the main area of our focus," she said.
The bank also pays special emphasis on supporting industrial growth in Myanmar. Its presence would encourage more trade and local employment.
Likewise, Indian firms would now have a chance to better respond to trade challenges.
The branch would bring US$75 million (Bt2.6 billion) as its initial capital.
"We will be in a position to finance whatever they would like to do. So for both companies and the country, this will be very enabling," she said.
"There are a lot of foreign firms that do not have banking representatives here. We can do business with them."
Siddhartha Sengupta, SBI's deputy managing director for international banking, said the bank would offer products such as corporate banking, trade finance and treasury.
"This is just the beginning for the State Bank of India in Myanmar.
"We are looking at a very strong future in this country, not only between India and Myanmar, but also between Myanmar and the rest of the world.
"The world is looking at Myanmar," he said.
India is the fifth largest trading partner of Myanmar, with two-way trade exceeding $2 billion. The branch opening would facilitate a bigger amount of trade and commerce, he said. The lifting of sanctions against Myanmar would have a very big impact on Myanmar's economy and banking sector.
Aung San Suu Kyi's meeting with the US president has led to a very strong feeling in the market, as the rest of the sanctions will also be gradually lifted, he said.
"Myanmar is very important for us. That is why we opened the branch," he said.
The establishment of SBI's representative office last year played a crucial role in the bank's business expansion, as it marked an expansion in relationship-building with Myanmar authorities, the CBM, local corporations and local important entities.
"It is like a corridor. This corridor is going to be more and more vibrant. It is a linkage to see how we can contribute to the further growth of the country," he said.
Ghanshyam Srivastava, chief executive of SBI's Yangon branch, said the branch opened two accounts on the very first day.
The number is expected to grow significantly in the months to come, thanks to the growing interest of foreign corporations.
"It is a long way for us to go, and we also have a lot of Indian corporate partnerships with us. It is just the beginning of our long journey," he said.
http://www.nationmultimedia.com/asean&beyon/Largest-Indian-bank-enters-Myanmar-30296841.html
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