March 8, 2006	Wednesday	Safar 7, 1427

NEW DELHI, March 7: Three of India’s leading commercial banks have asked the Reserve Bank of India (RBI) for permission to open two branches each in Pakistan, the government told parliament on Tuesday.

Junior Finance Minister Pavan Kumar Bansal told the Rajya Sabha that the three state-owned banks that had asked for permission to open the branches in Pakistan were the State Bank of India, Bank of India and the Punjab National Bank.

The RBI, India’s central bank, had granted permission in November last year for opening two branches of banks from India in Pakistan and two branches of banks from Pakistan in India, on a reciprocal basis.

The specific banks to be permitted to open the branches are to be mutually agreed by the RBI and the SBP keeping in view their respective regulatory policies and procedure. Explaining the third bank, possibly considered a useful addition in view of the bonhomie between the two Punjabs, Mr Bansal said: “Punjab National Bank has also shown interest in opening two branches in Pakistan, apart from the applications received from the other two banks.”