J P Morgan has agreed a letter of credit (L/C) re-issuance deal with Union Bank of India (UBI).

Under, the agreement, UBI will be able to issue Asia-bound L/Cs through its Hong Kong branch.

Benefits

According to the general manager of UBI's international division, "partnering with JP Morgan for our Asia L/C business will deliver significant efficiencies that will benefit our clients and our counterparties."

The Indian bank hopes that the deal with J P Morgan will help it find more new customers, increase beneficiary-driven revenue and improve its global footprint.

Long relationship

The latest agreement is an extension of a long relationship between the two banks, which dates back to 1990.

This was when J P Morgan first provided US dollar clearing and related services to UBI.

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