Russia’s biggest lender, Sberbank, sees digital currencies playing a bigger role in India-Russia trade settlements as it expands its business ecosystem in India to support trade, investment and corporate partnerships, Chief Executive Officer Herman Gref said on Friday.

“It’s only at the beginning, but we see huge opportunities for digital currencies in settlements between the countries,” Gref said, adding that such transactions could become more efficient and attract greater demand than digital currency applications within individual countries.

The Russian central bank and the Reserve Bank of India are working on the issue, Gref said, adding that Sberbank was seeking to support the development of such instruments.

Sberbank has more than 30,000 corporate customers in India and has become an important partner for Russian companies seeking to expand into the Indian market, as well as Indian businesses working with Russia, Gref said.

The lender is developing digital platforms to help companies in both countries identify business opportunities and partners. One platform, developed with its Russian subsidiary Rabota.ru, focuses on recruitment between India and Russia, where a labour shortage has created demand for workers.

Sberbank also plans to establish a 24,000-square-metre business centre in New Delhi that will house its headquarters and serve as a hub for major Russian companies operating in India.

The bank is discussing another IT platform with Indian partners that would provide businesses with information on market opportunities, regulations and potential partners in both countries.

Gref said Sberbank wants to help address the imbalance in bilateral trade, with about $50 billion currently accumulated on the Russian side. Its priority is to boost Indian exports to Russia while facilitating Russian investment and business in India.

The bank had previously faced challenges from surplus Indian rupees in vostro accounts, but Gref said the issue had been resolved.

“Previously, we had problems with surplus rupees, but we have now found the right ways to utilise the rupee balances. It is no longer a problem in our trade,” he said.

Sberbank also sees strong medium- and long-term prospects for Russian investors in India, partly as a way to manage currency risk.

The bank plans to use its Bangalore technology hub to accelerate AI adoption in financial services and improve operational efficiency.

Gref said Sberbank would spend the next two to three years reinventing its financial business model in Russia and bringing those capabilities to India.