State Bank of India (SBI) has announced that it will offer a range of banking services, including letters of credit (L/Cs), from its base in the Dubai International Financial Centre (DIFC).

This follows confirmation from SBI officials that the bank has been granted a full banking license from the Dubai Financial Services Authority (DFSA).

Trade finance

The license allows the bank's DIFC division to accept deposits and provide credit, subject to DFSA guidelines.

According to SBI officials, the DIFC division will offer trade finance and short-term working capital loans comprising L/Cs and bank guarantees, term loans, project finance, as well as syndicated credit.

SME credit

India's largest banking institution has also obtained a retail endorsement for its license which, according to SBI officials, is needed for the bank to extend credit to small- and medium-sized enterprises.

The DIFC branch of SBI will be able to accept deposits from non-UAE-based clients in US dollars, euros and sterling.

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