India’s largest lender State Bank of India today signed a memorandum of understanding (MoU) with the Japan Bank for International Cooperation (JBIC).
The MoU was signed on developing and strengthening a framework for supporting the business operations of Japanese small and medium enterprises (JSMEs) and mid-tier enterprises who are clients of the Japanese Regional Banks (JRBs). Currently, JRBs have no branches in India.
JBIC, a policy-based financial institution wholly-owned by the Japanese Government, was mandated by the Government of Japan to act as a catalytic coordinator with regard to the needs of JSMEs for the financial services provided by local banks in Asia.
Increased business to SBI’s domestic branches and increased funds to the Tokyo and Osaka branches from stronger relations with liquidity surplus JRBs are the two immediate benefits accruing to SBI from this tie-up.