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Bankers in India are reporting increased interest in L/Cs as the country's exporters adjust to new global market conditions. This is in marked contrast to the pre-credit crunch trend for traders to move away from L/Cs towards open account trading terms.

Standard Chartered Bank, for example, reports a rise of around 10 per cent in L/C-backed transactions over the last year. The State Bank of India (SBI) has also reported a smaller rise of between 2-3 per cent in L/C-backed transactions in the last twelve months. This contrasts markedly with the trend prior to the last year. The SBI had reported falling L/C levels in the decade running up to the credit crunch.