SBI And Bank Of China Sign MoU To Further Business Interests In Each Others’ Domains

India’s largest bank State Bank of India (SBI) has signed a Memorandum of Understanding (MoU) with the world’s third-largest lender by capital size, Bank of China, to enhance business synergies between them, reports Press Trust of India (PTI).

"MoU between the two major banks of the two largest and fastest-growing economies of the world is a welcome step. This MoU will facilitate the clients of both banks to access banking products and services of each other, which will lead to a mutually beneficial relationship," said Rajnish Kumar, chairman, SBI.

Through this partnership, SBI and BoC will gain direct access to their respective markets of operation and the clients of both companies will be able to utilise the combined network to expand their businesses abroad. While SBI already has a branch in Shanghai, BoC will soon open one in Mumbai.

"India is increasingly making its global presence felt across various landscapes. Partnering with an organisation like SBI is strategically important to us, and we look forward to contributing to SBI's growth through our market expertise and established relationships," said Chen Siqing, chairman of BoC.

A ‘Too Big To Fail’ Bank

BoC is one of the four biggest state-run banks in China and in 2016, it was again designated as a Global Systemically Important Bank, thus becoming the sole financial institution from emerging economies to be designated as a Global Systemically Important Bank for six consecutive years.

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