The government of India, as reported, is not going to allow Pakistan’s largest private sector bank, Habib Bank, to open its branch in India because of some security concerns.
However, the National Bank of Pakistan (NBP), the Pakistan government-owned bank, may get the permission as per the bilateral talks.
India may ask Pakistan to send another alternative bank to operate in India during the Secretary-level talks in New Delhi next month.
Earlier, bilateral understanding between the two countries’s banking regulators, the Reserve Bank of India (RBI) and the State Bank of Pakistan (SBP) to give permission for two banks of each side to open branches in other country.
On the other hand, State Bank of India (SBI) and the Punjab National Bank (PNB) are looking for the approval from the Reserve Bank of India (RBI) as well as State Bank of Pakistan too for opening branches in Pakistan.