SINGAPORE  – Pakistan and India have agreed to allow two banks each from both countries to set up their branches across the border, Governor State Bank of Pakistan Yaseen Anwar told Indian media.

“We have held discussions with the Reserve Bank of India and both sides have agreed to issue a full banking licence to two banks of each country,” Anwar said on the sidelines of a conference organised by Institute of South Asian Studies.

The Indian banks that will be set up in Pakistan are State Bank of India (SBI) and Bank of India (BoI) and the Pakistan’s banks are National Bank of Pakistan and United Bank Ltd.

Anwar said: “It will take few months to approve Indian banks’ licences on receiving them. “We are ready to go tomorrow to India to set up banking operations.” He said that once banks are allowed to operate, it will help normalise trade relations between both countries.