India's largest bank in terms of network and lending, State Bank of India (SBI) said that it is going to setup a new fund. It shall do so in collaboration with State General Reserve Fund (SGRF) of Oman and the total worth of it would be close to $100 million.

The fund, said the bank, will be used for making equity investments in India.

It also said that as per the deal signed by the two parties, the total corpus of it will be increased to $1.5 billion in due course.

Deals also says that no particular sector will be targeted rather opportunities in all of them will be looked at.

The bank also said that the fund will be initially handled by both the parties and the future separation has not been decided upon as of yet.

Finance Minister, Pranab Mukherjee who was present during the occasion said that the deal was a landmark and will help in strengthening relationship between India and Oman. His views were supported by his counterpart Ahmed Macki.

The fund will start working immediately.