State Bank, BoB get licence for offshore branches in SEZs

Our Banking Bureau
25 March 2003

Mumbai: State Bank of India (SBI) and Bank of Baroda (BoB) have received the Reserve Bank of India’s (RBI) licence to set up offshore banking units (OBUs) in special economic zones (SEZs).

These are the first batch of licences given by the RBI for OBUs, after the government decided to allow offshore banking units in SEZs in the last Exim policy.

According to officials, SBI has been granted four licences for setting up banks in SEEPZ in Mumbai, Kandla, Kochi and Surat.

BoB is understood to have received licence for an OBU at SEEPZ. There are others such as Union Bank of India awaiting the RBI go-ahead.

According to RBI guidelines on OBUs, banks with overseas branches and experienced in running OBUs would be given preference.

Among foreign banks, Hong Kong and Shanghai Banking Corporation of India is understood to be awaiting licence.