Indian Overseas Bank Climbs Aboard Deutsche Bank’s China Express
Deutsche Bank has signed a memorandum of understanding (MOU) for the establishment of a closer relationship in cash management services with Indian Overseas Bank (IOB). It will see IOB use Deutsche Bank’s China Express solution for its US dollar (USD) payments to China.
Listed on the Indian stock exchanges, IOB is a large consumer and commercial bank based in Chennai, with more than 3,000 domestic branches across India and six overseas branches. A pioneer in retail banking, IOB has been operating for over 76 years and serves over 18m clients ranging from individuals, retailers, large enterprises and small to medium-sized enterprises (SMEs), to infrastructure developers and government organisations. It is also the only bank in India which simultaneously started its banking business in India and overseas.
The China Express solution leverages Deutsche Bank’s established coverage and reach in China as well as its automated payment platform to enable financial institutions in India to expedite USD payments of their corporate clients into China, thereby facilitating timely credit of funds to an exporter’s account, which enhances the exporter’s working capital efficiency and potentially enables the buyer in India to negotiate better trade terms.
Nancy So, Asia Pacific head of cash management financial institutions sales, global transaction banking at Deutsche Bank, added: “China is one of India’s largest trading partners and trade flows between the two countries are expected to continue to grow in the coming years. This presents opportunities for financial institutions in India.”