NEW DELHI, May 4: An understanding has been reached between the Reserve Bank of India and the State Bank of Pakistan to grant permission for opening two bank branches in each other’s country on a reciprocal basis.

Indian Minister of State for Finance Pawan Kumar Bansal informed the Lok Sabha on Friday that the Reserve Bank of India and the State Bank of Pakistan would mutually agree on the specific banks to be permitted to open branches, keeping in view their respective regulatory policies and procedures.

The Reserve Bank of India has proposed to the State Bank of Pakistan the names of the State Bank of India and the Bank of India for opening their branches in Pakistan. Habib Bank Ltd, the National Bank of Pakistan and the United Bank Ltd from Pakistan have evinced interest in opening their branches in India, the minister said.

—APP