SBI to Facilitate India-Israel Trade Settlement in Indian Rupees

The State Bank of India , India's only banking presence in Israel, has received regulatory approval to facilitate bilateral trade settlements in Indian rupees, marking a significant step in strengthening economic cooperation between the two strategic partners.

Rupee Settlement Mechanism

The Reserve Bank of India has identified Israel as a partner country under the rupee settlement mechanism, enabling Indian banks to facilitate export-import transactions in Indian currency. According to V Manivannan, CEO of SBI Israel, the bank has obtained all requisite approvals to implement this system.

Service Details:	Specifications
Settlement Currency:	Indian Rupee (INR)
Account Type:	Special Rupee Vostro Account (SRVA)
Transaction Coverage:	Exports/Imports of goods and services
Regulatory Authority:	Reserve Bank of India
Operational Status:	All approvals in place

Israeli entities participating in this mechanism will receive and make payments in INR, with funds credited to Special Rupee Vostro Accounts against invoices for supply or purchase of goods and services.

Promoting Trade Cooperation

SBI's Tel Aviv branch has actively promoted rupee trade through multiple initiatives:

Organized meetings and webinars with the Israel-India Chamber of Commerce
Engaged major defense entities in discussions about rupee settlements
Facilitated dialogue between local corporates and Indian businesses
Leveraged SBI's global network across 29 countries with 241 points of presence

The bank's strategic location in the Diamond Exchange in Ramat-Gan provides comprehensive services including trade finance, bank guarantees for India-related projects, and business account operations.

Expanding Services for Indian Workforce

With over 40,000 Indian workers recently joining the Israeli workforce, particularly in construction and agriculture sectors, SBI is expanding its service offerings:

Service Category:	Details
Target Demographic:	Indian workers in Israel
Primary Sectors:	Construction and Agriculture
Account Services:	NRI account opening facilitation
Remittance Solutions:	INR remittance business through fintech partnerships
Local Collaborations:	Partnerships with Israeli banks

Strategic Partnership Context

The rupee trade initiative aligns with strengthening diplomatic and economic ties between India and Israel. Recent high-level engagements include External Affairs Minister S Jaishankar's December visit to Israel and Commerce Minister Piyush Goyal's November visit. Israeli Prime Minister Benjamin Netanyahu and Indian Prime Minister Narendra Modi agreed to meet soon during their recent conversation.

Several Israeli ministers visited India in 2025, including Tourism Minister Haim Katz, Economy and Industry Minister Nir Barkat, Agriculture Minister Avi Dichter, and Finance Minister Bezalel Smotrich. These visits resulted in significant agreements:

Bilateral Investment Treaty (BIT) signed during Smotrich's India visit
Free Trade Agreement terms of reference established during Goyal's Israel visit

Operational Resilience and Future Outlook

SBI's Tel Aviv branch, established in 2007, has demonstrated remarkable resilience throughout the pandemic and regional conflicts spanning over two years. The bank's comprehensive global network and treasury support provide unique capabilities for local corporates engaged in international trade.

As India and Israel work toward realizing their full economic collaboration potential, SBI's rupee settlement mechanism represents a crucial infrastructure development supporting bilateral trade growth and financial integration between the two strategic partners.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.91%	+1.61%	+2.73%	+23.69%	+28.15%	+246.89%

Bank of India released its provisional financial performance for the third quarter of FY26, showcasing robust double-digit growth across all major business segments. The state-owned lender demonstrated strong operational momentum with significant year-on-year improvements in deposits, advances, and overall business metrics.

Global Business Performance

The bank's global business metrics reflected strong growth trajectory during the December quarter:

Metric	Q3 FY26	Q3 FY25	YoY Growth	Q2 FY26
Global Business	₹16,27,098 cr	₹14,46,295 cr	+12.50%	₹15,62,446 cr
Global Deposits	₹8,87,287 cr	₹7,94,788 cr	+11.64%	₹8,53,301 cr
Global Gross Advances	₹7,39,811 cr	₹6,51,507 cr	+13.55%	₹7,09,145 cr

The bank's global business rose 12.50% year-on-year to ₹16,27,098 crore as of December 31, 2025, compared with ₹14,46,295 crore in the corresponding quarter of FY25. Sequential growth from September 30, 2025 also remained positive.

Domestic Operations Show Strong Momentum

The domestic segment outperformed global metrics, indicating strong traction in the Indian market:

Parameter	Q3 FY26	Q3 FY25	YoY Growth	Q2 FY26
Domestic Deposits	₹7,65,500 cr	₹6,78,626 cr	+12.80%	₹7,30,098 cr
Domestic Gross Advances	₹6,28,617 cr	₹5,46,268 cr	+15.07%	₹5,97,350 cr

Domestic deposits recorded 12.80% year-on-year growth to ₹7,65,500 crore, while domestic gross advances expanded by an impressive 15.07% to ₹6,28,617 crore from ₹5,46,268 crore in the previous year.

Priority Sector Lending Gains Traction

Retail, agriculture and MSME (RAM) advances demonstrated the bank's commitment to priority sector lending. RAM advances on a gross domestic basis increased 17.69% year-on-year to ₹3,67,146 crore as of December 31, 2025, compared with ₹3,11,950 crore in the corresponding quarter of the previous year. The segment showed sequential growth from ₹3,47,709 crore at the end of September 2025.

Market Performance

Despite the positive financial results, shares of Bank of India ended at ₹149.25 on January 2, declining by ₹2.26 or 1.54% on the BSE. The stock movement reflects broader market dynamics rather than the bank's operational performance.

The provisional results indicate Bank of India's successful execution of its growth strategy across both retail and corporate segments, with particularly strong performance in priority sector lending and domestic operations.