South Asian Trade Finance Buzzes with Activity as Bangladesh LC Openings Hit 11-Month High and India’s SBI Modernizes

The trade finance landscape in South Asia is showing significant signs of dynamism, with Bangladesh reporting a surge in import financing and India’s largest bank launching a major modernization initiative. These developments point to both renewed economic activity and strategic investments in trade infrastructure across the region.

In Bangladesh, the value of import letters of credit (LCs) opened in January 2026 reached $6.61 billion, the highest level in 11 months, according to reports from The Business Standard and Fibre2Fashion. This spike in trade activity is attributed to businesses increasing purchases of essential commodities ahead of the national election and the month of Ramadan. Bankers and officials from the Bangladesh Bank noted that renewed business confidence and seasonal demand for goods such as rice, edible oil, and dates fueled the increase. For comparison, LC openings in January of the previous year were $6.85 billion, with LC settlements for January 2026 standing at $6.16 billion.

Meanwhile, in a move to bolster its trade finance capabilities, the State Bank of India (SBI) has launched a new Global Trade Finance Centre (GTFC) in Kolkata. As reported by Testbook, this center is designed to centralize and streamline the processing of trade finance and international banking transactions for all SBI branches across eastern and northern India. The initiative aims to provide faster turnaround times and enhance compliance oversight by leveraging advanced technology and deep domain expertise. The Kolkata GTFC, staffed by 277 employees, underscores a significant investment in the region’s trade finance infrastructure, promising greater speed and security for Indian businesses engaged in international trade.

Together, these events paint a positive picture of the evolving trade finance environment in South Asia. The surge in LC demand in Bangladesh reflects immediate economic momentum, while SBI’s strategic investment in India signals a long-term commitment to improving the efficiency and reliability of trade finance operations, positioning the region for sustained growth.