NAB forges closer ties with India

NAB has signed a memorandum of understanding with the State Bank of India, allowing the pair to work closely together.

National Australia Bank has signed an agreement to work closely with the State Bank of India. (AAP)

National Australia Bank has signed an agreement to work closely with the State Bank of India on enhancing co-operation in financial services.

The memorandum of understanding is the first signed by India's largest financial institution with an Australian bank.

It will allow the pair to work together on project finance and business and migrant banking.

NAB Asia chief executive officer Mr Daryl Johnson said India could become a significant new market for Australian businesses.

"This agreement provides NAB an opportunity to expand our work with SBI in generating new opportunities for investment in Australia, particularly for Australian businesses we support," he said.

SBI's deputy managing director Shri Siddhartha Sengupta said the agreement would also help the many Indian companies which already have a presence in Australia.

NAB opened its first branch in India in 2012.