Country’s largest public sector lender State bank of India and Korea Development Bank have signed a memorandum of understanding to enhance business synergies.
The agreement outlines the plan to enhance cooperation in areas including corporate finance, project finance and asset finance.
“Asset finance includes (but not limited to) trade finance, cash management products, syndicated loans, infrastructure/real estate financing, capital markets, securitisation, derivatives and risk management, financial advisory services and acquisition finance,” SBI said in a statement here.
The agreement was signed between SBI chairman Arundhati Bhattacharya, and chairman and CEO of Korea Development Bank (KDB), Lee Dong Geol.
“To enable a smooth cooperation and draw the full benefit from the MoU, both the banks will work on the establishment of a korea desk in India,” the statement said.
The proposed credit lines from KDB will help SBI to offer competitive terms for facilitating bilateral business. The proposed Korea Desk follows the recent inauguration of Japan Desk by SBI in New Delhi,” Bhattacharya said.
KDB is providing funding facility to SBI through credit lines and/or money market lines, as per terms agreed between the two banks.
The funds may be used for money market, trade finance and loans to Korean companies doing business in the country, the statement said.
“We are delighted to sign this agreement with India’s leading financial institution, which will help facilitate the growth of Korean Companies operating in India,” KDB Chairman Lee Dong Geol said.
Through this MoU, both SBI and KDB will gain direct access to both markets of operation, and will be able to use the vast combined network to expand their businesses abroad.
“India is increasingly making its global presence felt across various landscapes. Partnering with an organisation like SBI is strategically important to us, and we look forward to contributing to SBI’s growth through our market expertise and established relationships,” Geol added.