Economy, Business And Markets

SBI Alerts Branches on Iran Dealings

SBI Alerts Branches on Iran DealingsSBI Alerts Branches on Iran Dealings

India’s largest lender State Bank of India has alerted all its offices on the pitfalls of dealing with companies carrying out trade with Russia and Iran, which are battling US sanctions. 
Large corporate branches handling oil import payments to Iran have been told to inform Indian refiners that the bank will not be able to handle such transactions from November 4, if the existing sanctioned regime continues.
 All branches have been directed to refrain from taking new exposure in any form, such as letter of credit and bank guarantee, for any transaction related to Iran with immediate effect, according to a SBI internal communiqué dated May 25, Economic Times reported. 
According to a news agency report, Iran remained the third-biggest oil exporter to India during April 2017-February 2018, while Iraq replaced Saudi Arabia as top supplier. The April 2018 report said that drawn by incentives offered by Tehran, Indian state refiners plan to double oil imports from Iran in 2018-19. 
The bank’s branches have to invariably obtain prior clearance from the compliance division before handling transactions related to Russia (and a few other countries) in a special format and conduct higher level of due diligence before taking any credit exposure. 
The US this month withdrew from the Iran nuclear deal and reimposed sanctions that were suspended under the 2015 accord. 


Subscribe to the Financial Tribune to continue reading this article or Log in to your account if you are already a subscriber.

Find out more about our subsciption plans here.

Add new comment