Sanctions-hit Iran may grant licences to Indian banks

According to sources, Iranian delegates have met finance ministry officials here and may soon give licences to State Bank of India, Bank of India and the Bank of Baroda to open branches in Tehran. This can help businessmen of both countries to a great extent as they grapple with the issue of letters of credit. Iran has already cleared the proposals of seven banks of other countries to open branches.

In a bid to open its economy further for foreign investments, Kord Zanganeh, chairman of Iranian Privatisation Organisation said, “Indian companies can set up plants in Iran, set up joint ventures with Iranian partners or even buy stake in our companies. We are in the process of divesting some of our state owned companies (SoE) and we welcome Indian companies to buy even 100 per cent stake in the SoEs.”

Indian industrialists and External Affairs Ministry officials have said that it was not just the Iranians who are keen to forge stronger business links with India. The desire was mutual and business was quietly prospering despite the unhappiness of New Delhi’s new friends in Washington, they said. Some analysts, however, say that Iran badly needs to build such relations as it seeks to integrate its economy with the rest of the world but is handicapped by US and UN sanctions over its nuclear ambitions.