Mizuho to make deal with State Bank of India

by Richard Kilner

Story link: Mizuho to make deal with State Bank of India

Industry insiders are claiming that the State Bank of India will form a business tie-up with Mizuho Financial Group, Japan’s second largest lender.

Japanese newspapers Nikkei and Yomiuri have reported that the corporate banking arm of Mizuho are to sign a deal later on Friday, in Mumbai.

It is not expected that the two firms will form capital ties at the present time.

An anonymous source within Mizuho has confirmed the reports.

However, no official comment has been forthcoming.

Earlier this year Mizuho indicated it would invest $1.2bn in subprime hit bank Merrill Lynch.

Should the deal go through it would be the first of its kind, with a Japanese bank investing significant funds in an American one, for decades.

The restricted opportunities for domestic growth has led to a number of Japanese firms looking for expansion opportunities overseas.