State Bank of India on Course to Open Branch in Israeli Exchange

The State Bank of India (SBI) is on course to be the first foreign bank to open a branch in the Israeli Diamond Exchange (IDE) in November, with the license process well on its way.

The SBI aims to take advantage of the countries' increasing bilateral trade that totaled $2.2 billion in 2004 – half the amount connected to the diamond industry.

The bank has completed the formal application process and problematic issues have been dealt with, allowing the Supervisor of Banks Yoav Lehman, who must approve the request, to send the bank its draft license.

Israel and India, which have a burgeoning diamond trade, agreed the idea of the SBI opening a branch in the Israel Diamond Exchange complex during the visit of Israeli Minister for Industry and Trade, Ehud Olmert, to India in December last year.

According to IDE President Avi Paz, the Exchange has already reserved a space in one of its buildings for the bank. Paz told IDEX Online yesterday the bank will provide much needed bank credit to Israeli diamond firms and to foreign companies that are moving their headquarters to Israel.

Around 30 Indian diamond merchants operate in the Israeli bourse.

Israel and India, major diamond importers and exporters, are looking into ways of expanding trade after bilateral trade last year jumped by 36 percent. The countries' trade ministers believe annual bilateral trade can reach $5 billion from $2.2 billion last year.