At a reception Thursday evening to celebrate Canada’s multicultural communities, Bank of Nova Scotia representatives announced a new agreement to establish a relationship with HDFC Bank in India.

The agreement will leverage the strong presence of each bank and enable referrals for customers in Canada and India, subject to local banking regulations. A formal agreement is expected to be signed shortly.

“We are very proud to announce a new relationship with HDFC Bank in India. This will enable Scotiabank to reach out to people in India who are immigrating to Canada and, at the same time, provide our customers in Canada with a referral to one of the leading financial institutions in India,” said Sabi Marwah, vice-hair and chief administrative officer, Scotiabank.

For the year ended March 31, 2008, HDFC Bank reported a net profit of INR 15.90 billion ($379 million), up 39.3%, over fiscal 2007.

As on May 23, HDFC Bank had a network of 1,167 branches across India. On this date the amalgamation of HDFC Bank with Centurion Bank of Punjab was formally approved by Reserve Bank of India to complete the statutory and regulatory approval process.

“We are happy to work with Scotiabank in this initiative. Our institutions share common values of excellence in serving our clients and meeting their banking and financial needs. We look forward to creating value for our shared customers as we move forward,” said Abhay Aima, group head, equities, private banking, third party products, NRI & international consumer business, HDFC Bank.

“According to Statistics Canada, between 2001 and 2006, 155,000 people immigrated to Canada from India. Through our relationship with HDFC Bank, we will be able to start a conversation with people coming to Canada before they leave home,” said Rania Llewellyn, vp of multicultural banking, Scotiabank.

Llewellyn added, “At the same time, this relationship should enable Scotiabank to refer customers to one of India’s largest private banks, with a solid reputation for excellence. This service enables us to provide our customers with unique value.”