State Bank of India (SBI) and National Australia Bank (NAB) have signed a Memorandum of Understanding, supporting greater collaboration between the two parties.
The memorandum is the first of its kind that SBI has signed with an Australian bank.
The memorandum was signed yesterday by NAB Asia Chief Executive Officer Mr Daryl Johnson and SBI Deputy Managing Director and Group Executive, Shri. Siddhartha Sengupta at a ceremony at the BKC Trident Hotel in Mumbai, India in the presence of the Hon Andrew Robb AO MP, Australian Minister for Trade and Investment.
Mr Johnson said the signing of this agreement comes during an exciting time for Australia-India relations.
“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” Mr Johnson said.
“Given India’s rapid economic development and growing demand, the long-term economic opportunities for Australia are immense.
“There are immediate opportunities for Australian and Indian businesses in agriculture, resources and education with more opportunities to come in other sectors.
“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.
“As India’s largest financial institution, SBI is one of India’s key state financial institutions. This agreement provides NAB an opportunity to expand our work with SBI in generating new opportunities for investment in Australia, particularly for Australian businesses we support.”
Sharing the same sentiments as Mr Johnson, Mr Sengupta said, “The MOU is signed at an appropriate time as the relationship between India and Australia is getting stronger and it is only natural that the top banks of both countries, SBI and NAB, have come together to cater to the needs of the industry and the population. Many Indian corporates already have a presence in Australia and with this MOU, we are confident of serving them better.”
The memorandum will enhance cooperation between the two banks in the areas of project finance, correspondent business banking, migrant banking as well as knowledge sharing in industry sectors such as natural resources and infrastructure.
NAB launched its first branch in India in 2012 and this memorandum is the first cross border financial services collaboration that NAB has undertaken in India. NAB’s approach in Asia is relationship-driven, supporting Australian business in Asia and Asian business in Australia. Our 500 people in Asia focus on the banking activities arising from the business, trade, investment and people flows between Australia, New Zealand, and Asia.