A Memorandum of Understanding was signed on 14 May 2003 between Vneshtorgbank and State Bank of India.
The Memorandum sets forth favourable conditions to be created for mutual relations between both banks in a variety of interbank co-operation fields such as documentary business and trade finance. In particular, the parties aim at establishing mutual limits on documentary transactions, and in the near future to start developing and co-ordinating terms of an agreement intended to finance trade between Russia and India. The Memorandum also envisages exchange of information on a variety of interbank co-operations issues.
The signing of the Memorandum with the framework of the regular meeting of the Russian-Indian intergovernmental commission for trade, economic, scientific, technical and cultural co-operation underlines the significance of developing and further strengthening mutual co-operation between both banks.
Co-operation maintained by Vneshtorgbank with financial institutions of India which is a most important partner of the Russian Federation in economy and trade is intended to foster improved quality of services offered to Vneshtorgbank`s customers in export-import trades, optimisation of interbank payments and settlements and customer lending schemes. Subject to this strategy, VTB signed in last July a US$25 million credit agreement with Eximbank of India for a 5 year term, which is filling with concrete achievements.
For reference: State bank of India is a major State-run bank of India, which goes much ahead of other Indian banks, offers universal spectrum of banking services to individual and corporate customers. The bank has established an extended branch network within and outside India, and affiliated regional banks. It has a representative office in Moscow. At present, State Bank of India together with Canara Bank are at the final stage of opening a joint bank in Russia.