State-run Union Bank of India has turned to JP Morgan to provide a letter of credit re-issuance services programme for Asia-bound transactions.

Under the agreement, Union Bank will issue letters of credit through its Hong Kong branch and leverage on JP Morgan’s position in the region to reach new customers.

This is the second time the Indian bank has partnered with JP Morgan; the first saw the US bank providing US dollar clearing and related services to the bank in 1990.

“Partnering with JP Morgan for our Asia letter of credit business will deliver significant efficiencies that will benefit our clients and our counterparties,” says V Khanna, general manager of the international division at Union Bank.

“JP Morgan has demonstrated continued leadership in trade and brings strong risk management capabilities to the table. We look forward to working with them further as Union Bank of India continues to deliver its programme of international expansion.”