State Bank of India Set to Open Israel Branch

State Bank of India (SBI) will open its first branch in Israel at the Israel Diamond Exchange (IDE) complex in Ramat Gan. According to an IDE statement released on May 31, consensus on the opening of the branch was achieved following prolonged negotiations between IDE representatives, led by Paz, and SBI representatives. After a series of announcements and much anticipation over the opening of the branch, SBI was granted a license to open its 640 sq meter branch beneath the rough diamond hall. IDE president Avi Paz and SBI Israel branch CEO, V. Sasikala, signed an agreement at a formal ceremony on May 30 at the Israel Diamond Exchange.

It is widely anticipated that SBI will extend an additional $250-300 million in credit to Israel�s diamond industry. Israeli banks currently provide the industry with approximately $2 billion in credit. SBI intends on working with the diamond industry and companies in other sectors. India�s embassy in Israel was closely involved in the negotiation process, hoping that the branch will further facilitate India-Israel trade. �The entry of India�s state bank into Israel will help increase the scope of trade, enlarge the amount of credit available to diamantaires and help fulfill IDE�s vision of absorbing new diamanataires,� said IDE in a statement.

Paz noted that the exchange has worked hard in recent years to bring an international bank into the industry and provide additional credit to Israeli diamantaires. �The opening of the SBI branch is a remarkable success for Israel�s diamond industry,� said Paz. �The move is proof of the growing confidence among global institutions in Israel�s diamond industry.� Israel Diamond Institute managing director, Yair Cohen, welcomed the opening of the SBI branch. Cohen pointed out that financial indicators demonstrate the strength and stability of Israel�s diamond industry in comparison to other diamond centers and other sectors within Israel�s economy. Israel�s polished diamond exports reached a new peak in 2005 to $6.7 billion while Israel�s rough diamond exports reached $3.5 billion.