Japan-based MUFG Bank has reached a memorandum of understanding (MoU) with Indian private sector bank ICICI Bank to expand its footprint in India.
Under the MoU, MUFG Bank and ICICI Bank will establish a framework of partnership across different domains including trade, investment, treasury, and corporate and retail banking.
Also, the deal enables the banks to combine their individual strengths to effectively cater to the banking needs of Japanese corporates operating in India.
Established in 1994, ICICI Bank is a private sector bank in India, with INR15.2 trillion ($208bn) in consolidated total assets, as of 31 December 2020.
MUFG Bank is a member of Mitsubishi UFJ Financial Group, which offers commercial banking, trust banking, securities, credit cards, consumer finance, asset management, and leasing services.
The bank has been operating in India for 127 years, when Yokohama Specie Bank, a predecessor of MUFG, has opened an office in Mumbai in 1894.
MUFG Bank currently operates four branches in the metropolitan cities of Mumbai, New Delhi, Chennai and Bengaluru, and a fifth non-metro branch in Neemrana, in Rajasthan.
The bank said that its MoU with ICICI Bank is in line with its commitment to India and has the potential to further enhance and strengthen its services in the country.
According to the Japanese bank, rising domestic consumption, and strong government initiatives to develop infrastructure and conditions for foreign direct investment, would support India’s growth.
In November last year, the bank has signed an MoU with the Department for Trade and Investment (DTI), Government of South Australia, to promote economic cooperation between MUFG Bank and South Australia.
The MoU aims to support Japanese companies’ economic and investment activities in South Australia and South Australian companies interested in developing their business in Japan.
