Processing .....please wait.. 
The article has been forwarded.... 
Indian, Pak banks to set up cross border branches
By agencies
|
Tuesday, 08 November 2005, 20:30 IST
NEW DELHI: After a gap of almost fifty years, India and Pakistan have agreed to re-establish banking ties and allow banks from both the countries to do business with each other.
Banking regulators of both countries have permitted two banks from Pakistan to open branches in India and two Indian banks to set up shop across the border on a reciprocal basis.
While Indias largest bank the State Bank of India will be one of the state owned banks to open its branch in Pakistan, while Habib Bank of Pakistan is reckoned to be a candidate in India.
Before the partition in 1947, SBI, Canara Bank and Punjab National Bank were among some of the Indian banks that had branches in what is now Pakistan. The assets of some of these banks were frozen after the war.
The opening up on the banking front has come about after visits by RBI Governor Y V Reddy to Karachi in May this year, which was followed up by the governor of the State Bank of Pakistan Ishrat Husain in October.
The RBI and the State Bank of Pakistan, keeping in view their regulatory policies and procedures, would mutually agree on the specific banks, which would be permitted to open branches.