4-5 Pakistani banks keen to open branches in India

As many as 4-5 Pakistani banks are interested in setting up branches in India and are waiting for some movement in this area between the two countries, Pakistan's central bank has said.

"It is very unfortunate that there is no movement with regard to business and banking side between two countries. Once the environment is more conducive, I am sure we both will have opportunity to learn together.

There are a number of banks which are very interested to come and work in India," State Bank of Pakistan Deputy Governor Saeed Ahmad told PTI. He was recently on a visit to India for an event.

"We informally have been asked by four-five major banks but since there has been no opening up as such, so no formal application has come," he said when asked how many banks from Pakistan would be interested to have their operation in India.

In August 2012, both the sides had agreed to issue full banking licenses to two banks from each country. However, there has not been any movement on this since then.

Minister of State for Finance Jayant Sinha recently said in the Lok Sabha that Reserve Bank of India (RBI) has informed of only two banks of Pakistan, Muslim Commercial Bank Ltd and United Bank Ltd, having applied for banking presence in India.

"I am sure that some of the Indian banks will be very keen to work in Pakistan," Ahmad said.

Many Indian banks had operations in Pakistan before the partition in 1947. Punjab National Bank had its registered office in Lahore before independence. Oriental Bank of Commerce was established in Lahore in 1943.

State Bank of India and Bank of India had their branches in Karachi and Lahore till 1965, when they were forced to close down following the war between the two countries.