NEW DELHI, Oct 5: The Reserve Bank of India and the State Bank of Pakistan are working on modalities for opening branches of each other’s bank in both the countries, SBP Governor Dr Ishrat Husain said on Wednesday.

“The decision for opening bank branches will be taken by both the governments, but the two central banks are working on the modalities for it,” the SBP governor told reporters in Mumbai.

According to a report received here, Dr Husain was visiting the financial capital of India to attend a three-day conference on “Global Banking: Paradigm Shift”, organized by the Federation of Indian Chambers of Commerce and Industry and the Indian Banks Association.

Dr Husain said he would be meeting RBI Governor Y.V. Reddy and a public announcement would be soon made in this regard. He emphasized that there should be banking relations between the two countries to give boost to trade.

Under a proposal of opening bank branches in each other’s country, the State Bank of India has already applied to set up a branch in Pakistan and New Delhi has received an application from Habib Bank in this regard. —APP