Allahabad Bank on Monday opened its first overseas office in Shenzhen, a Chinese city near Hong Kong, hoping to tap trade and commercial linkages between the two Asian giants.
The bank is expected to open its first foreign branch in Hong Kong soon, officials said adding that the Shenzhen representative office would be upgraded to a full-fledged branch in due course.
The office inauguration was attended by Allahabad Bank Chairman Onkar Nath Singh and senior bank officials as well as representatives from the China Banking Regulatory Commission and Shenzhen government.
With the Shenzhen office and the proposed branch at Hong Kong, the Allahabad Bank is set to act as an effective intermediary in the booming trade and commercial ties between the two Asian giants, a senior bank official said.
China and India recorded $18.73 billion in trade volume in 2005, up 37.5 per cent from the previous year, according to the Chinese ministry of commerce. The volume is expected to exceed $20 billion this year.
Meanwhile, Allahabad Bank has received a licence from the Hong Kong Monetary Authority for opening a branch in Hong Kong, officials said.
Since the Reserve Bank of India has already given its nod to the project, the road is clear for the the bank to open its first overseas branch in its 142-year history.
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