Bank funding for Korean firms in India eased

Banks sign memorandum of understanding to support SMEs.

India’s largest banking and financial services company, State Bank of India, has signed a memorandum of understanding with the Industrial Bank of Korea to develop and strengthen a framework for supporting business operations of Korean small and medium enterprises in India.

The MOU was signed recently by Hemant Contractor, Managing Director and Group Executive (IB) on behalf of SBI and Jun-Hee Cho IBK Chairman and Chief Executive Officer.

There are some 480 Korean SMEs operating in India. IBK has no branches in India to extend financial service requirements to Korean companies. The MOU will assist Korean companies access funding from India's largest bank.

SBI is also setting up a representative office in Seoul and this MOU will help SBI to receive more business from Korea.