Major India bank launches operations in Hong Kong

HONG KONG, Jan. 30 (Xinhua) -- Punjab National Bank, a major India-based bank, staged a ceremony Wednesday to officially launch its commercial banking operations in China's southern special administrative region of Hong Kong.

The new branch will be offering a full spectrum of banking facilities, including checkable accounts, deposit products, trade finance and loan syndication, the bank said, adding that it was critical to the bank's strategy of expanding its operations overseas and meeting the needs of its main customers who have opened offices in China.

"Hong Kong is the bank's gateway to the Chinese mainland. The trade between China and India has already reached the figure of 38billion U.S. dollars," K C Chakrabarty, chairman and managing director of the India-based bank, said at the ceremony.

Target for bilateral trade between China and India had recently been revised to 60 billion U.S. dollars at a meeting of national leaders from both sides, he said, noting that Hong Kong was the only financial center outside China's mainland where renminbi transactions were permitted and most of the trade was routed through Hong Kong.

"I am delighted that the Bank has chosen Hong Kong as one of its first overseas bridgeheads in its global expansion strategy. It is a clear testament to this city's status as a global financial center," said John Tsang, Hong Kong's financial secretary.

Established in 1895 in Lahore, Punjab National Bank has built a customer base of over 35 million and has 4,540 offices and 421 extension counters.

The bank said it has also started the process to upgrade its Shanghai representative office into a full-fledged commercial banking branch.