Marking another step in the growing relationship between two of the world's fastest developing economic powerhouses, Allahabad Bank, India's oldest joint stock bank, announced Monday it has chosen Hong Kong for its first overseas branch.

The leading public sector bank, which is currently 55.23 percent held by the Indian government, opened a branch at the Lippo Center Monday to serve retail and corporate clients. The event was attended by Head of Banking Supervision at Hong Kong Monetary Authority T.Y. Chan and Consul General of India in Hong Kong B.K. Gupta.

Chairman and Managing Director of Allahabad Bank A. C. Mahajan said at the opening ceremony that having consolidated its business with 2,046 branches across India, and cemented long standing relationships with 225 foreign counterparts in all major economies, the Bank decided to expand its presence into key overseas business centers.

"Hong Kong was a natural first step and we look forward to offering a range of improved and efficient services to cater to the needs of retail and corporate clients in India as well as Hong Kong," he said.

As part of its China expansion plans, the bank also set up a representative office in Shenzhen as a base to explore opportunities in the dynamic southern China region.

The Director-General of Investment Promotion at Invest Hong Kong, Mike Rowse, said he was delighted that Allahabad Bank chose Hong Kong for its first overseas branch. "Almost three quarters of the world's leading banks already have offices here, so it's a natural step for a leading Indian bank, such as Allahabad Bank, to set up here," he explained.

"Hong Kong's 45,000-strong Indian community has an impressive and long-standing reputation for business and trade across the region and around the world. I have no doubts Allahabad Bank will find exciting opportunities in Hong Kong," Rowse added.

Established on April 24, 1865, Allahabad Bank currently has assets totaling 118.04 billion HK dollars (US$15.13 billion) and deposits of 102.77 billion HK dollars (US$13.18 billion).

(Source: Xinhua News Agency February 27, 2007)