China approves first branches for Indian private sector banks

May 12, 2013, 10:33 AM EDT

China has given permission for the first time for a private sector Indian bank to open a branch in the country. Axis Bank, India's third largest non-state bank, is to open a branch in Shanghai within three months, the Financial Times reports. ICIC, India's largest private sector bank, is expected to follow suit later this year, a sign of the growing trade relations between Asia's two largest emerging economies. Both financial institutions are currently restricted to representative offices in China.