Two out of India's three largest banks look set to open up branches in China in a clear indication of closer financial and trade links between Asia's two fast-growing giant economies.

Since trade volumes between India and China are on an upward trend, Axis Bank and ICICI will most likely seize opportunities to write substantial amounts of L/C business.

Bank openings

India's third largest private sector bank, Axis Bank, is planning to open its first branch in China in the next three months.

The largest Indian private bank, ICICI, is set to open a Chinese branch later this year.

More trade

Axis has received permission from regulators to open a full branch in Shanghai, which would make it the first Indian private sector bank with a branch in China.

Increased trade flows between India and China are opening up banking opportunities for banks.

Banking opportunities

As well as fee-based services such as L/Cs, Indian banks with branches in China are expected to seize opportunities to provide working capital loans and trade export financing.

Trade between India and China is projected to top US$100 billion by 2015 according to the Confederation of Indian Industry.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.