State Bank of India (SBI), the largest public sector lender, and Amazon today signed a Memorandum of Understanding (MoU), identifying areas of cooperation to build a digital India which meets the aspirations of the next generation of customers and small businesses.

SBI and Amazon will develop trusted and frictionless payments and commerce solutions for customers and small businesses, capitalizing on the exponential growth in internet penetration to drive the adoption of e-commerce and m-commerce in India.

Arundhati Bhattacharya, chairman, SBI said that as the premier Bank of the country, we are always exploring ways to fulfill the aspirations of our millions of customers. Our partnership with E-Commerce platforms like Amazon would give a fillip to e-commerce in India and brings lots of value to our retail and SME customers. We are working on ways to enrich customers' payment experience and opening up the windows of e-commerce to our SME customers.  E-commerce as an industry is at inflection point and SBI stands with all the stake holders-the retail customers, the SME clientele, the large logistics companies, others-in facilitating this defining change.

Shares of the company gained Rs 3.5, or 1.21%, to settle at  Rs 291.80.  The total volume of shares traded  was  1,799,445 at the BSE (Wednesday).