Ten more Indian lenders to set up base in UK

In a sign of growing interest of Indian financial sector to expand abroad, 10 more Indian lenders plan to set up base in United Kingdom.

UK Commercial Secretary to the Treasury James Sassoon today told reporters that 10 more lenders, including few banks, had evinced interest to establish presence. He however did not elaborate as to which entities had approached for approvals. The UK is host to more Indian banks than any other foreign nation — with nine separate companies operating branches across the UK.

The Export Import Bank of India, export credit agency, would soon open its office in London, taking tally of Indian lenders in UK to ten, Sasson said addressing a Indian Banks’ Association-FICCI summit here.

State Bank of India, which has strong presence in England, has decided to make London as headquarter for its European operations. UK banks have had a long stay in India and reciprocity is a key feature for bilateral relationship. Indian banks enjoyed liberal regime (for business and branch growth) in UK, he said hoping that the Reserve Bank of India will extend similar treatment to UK banks, which had been operating for decades.

Seeking to enhance bilateral economic relations, he said first, both had to strengthen the links that existed between the banking and financial sectors of the two countries. Second, there was need to strike the right regulatory balance in response to the global economic crisis. And finally, the international financial institutions should be modernised to reflect the emergence of India as a world economic power.