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SCMP Reporter

Canara Bank, a state-owned Indian lender, opened its Shanghai branch yesterday as it vies for a share of the booming China-India trade.
The bank is the fourth Indian lender to open for business on the mainland amid the soaring growth of imports and exports.
'Whoever comes to us that we find viable, we will finance them,' said chairman A.C. Mahajan. 'We'll definitely do everything here similar to what we are doing in India.'
Trade between the two nations was valued at US$38.7 billion last year and it was expected to top US$100 billion by 2010, Canara Bank said in a statement.
So far, State Bank of India, Bank of India and Bank of Baroda have started operations in China.
China and India, which account for a third of the world's population, registered the fastest economic growth among major global economies in the past few years.
State Bank of India spearheaded the move among Indian lenders into China when it set up a Shanghai branch in August 2006. Canara's Shanghai operation is its third overseas branch after earlier expanding  into Britain and Hong Kong.
Economists  believe business ties between China and India should be strengthened because the two economies complement each other. China is recognised as the world's manufacturing hub while India has an edge in the service sector.
Mr Mahajan predicted that the branch's first-year revenue would hit US$60 million.
Canara Bank, 73 per cent owned by the Indian government, first established an office in Shanghai in August 2005. At present the bank is not allowed to do consumer banking business in China.
Global banking giants including Citigroup and HSBC are now competing with home-grown lenders by offering a wide range of banking services to mainland residents after being locally incorporated.
Several other Indian banks, including ICICI Bank and UTI Bank which have opened offices on the mainland, are also  seeking to expand there.
More than 150 Indian companies now have operations in China.
Mr Mahajan  said Canara Bank expected profit this year to remain flat  due to provisions for securities-related business. It reported a first-quarter profit of US$29.23 million, down 49 per cent from a year earlier.



India's Canara Bank opens Shanghai branch