Australian bank signs agreement with SBI

An Australian bank said Thursday it has signed an agreement with State Bank of India (SBI), the country's largest lender, to increase cooperation in project finance, migrant banking and international payments between banks, a media report said.

National Australia Bank (NAB) signed a memorandum of understanding (MoU) with SBI to increase its exposure to the fast growing Indian economy, The Sydney Morning Herald reported.

"India is the world's third largest economy after the US and China in terms of purchasing power parity. India has also become a major export and investment destination for Australia, and is currently our fifth largest export market," said Daryl Johnson, NAB Asia chief executive.

"As Australia's largest business bank, we believe the positive signals coming out of the Indian economy mean that India has the potential to be a significant new market for Australian business."

The MoU would also allow NAB to work with SBI on new investments in Australia.

"Many Indian corporates already have a presence in Australia and with this MoU, we are confident of serving them better," the daily quoted Siddhartha Sengupta, SBI's deputy managing director, as saying.

Two-way trade between Australia and India is worth about $15 billion a year.