Pak's National Bank likely to open branch in India

Islamabad, Oct 13: India may allow Pakistan's National Bank to open its branch in the country, a local media report said today.

Official Associated Press of Pakistan (APP) reported that National Bank is initially expected to be granted entry in India, however, Habib Bank is unlikely to be allowed, as Reserve Bank of India's (RBI) holding norms for private sector banks do not permit the operation of this banking institution in India.

Habib Bank along with state-run National Bank of Pakistan had applied to RBI, India's banking regulator, for starting operations in India, while SBI, PNB and Bank of India had sought approval for operating in Pakistan.

It's only a regulatory issue that does not permit Habib Bank to start operations in India, the agency quoted sources as saying.

Initially, only National Bank of Pakistan is likely to be allowed to enter India, and as such either SBI or PNB will be permitted entry into Pakistan on a reciprocal basis, the sources said.

First of all, it would be seen how the National Bank of Pakistan operates in the country before allowing any other banking entity into India.

However, so far a proposal on allowing NBP has reached Indian finance ministry and is pending with RBI.

Meanwhile, SBI, PNB and Bank of India have sought government and RBI's approval for opening branches in Pakistan.

UNI