New Delhi, Oct 17 (IANS): India and the Philippines are likely to sign a pact by January to provide a legal framework for exchange of banking and tax related information, Finance Minister Pranab Mukherjee said Monday.

The two countries are likely to sign a Double Taxation Avoidance Agreement in January, Mukherjee said after meeting his Philippines counterpart Cesar V. Purisima here.

Mukherjee said India would be happy to further strengthen banking links with the Philippines.

State Bank of India has proposed opening a branch in Manila. "India will welcome a conducive environment for stronger banking links between the two countries," he said.

Philippines Finance Secretary Purisima said he would take up the matter with the concerned department to expedite the finalisation of the Double Taxation Avoidance Agreement.

Purisima said there was a lot of potential to further strengthen relations and cooperation between the two countries, especially in the field of education, tourism and manufacturing sectors.