The Commonwealth Bank of Australia has opened its first branch in India in a bid to capture a greater share of the rapidly growing south Asian market.

The new branch, located in Mumbai, will provide trade finance, remittance and foreign exchange services to organisations trading between the two countries and to individuals with remittances and investments.

Tight competition among Australia's big four banks are driving them to seek opportunities in other Asian countries, particularly in China, India and Indonesia. With the China and India gradually relaxing regulatory guidelines over the presence of foreign firms, banks are becoming optimistic and are starting to set up shop.

"We have chosen India as one of our preferred growth markets, along with China, Indonesia and Vietnam. We are increasingly looking at emerging markets," Simon Blair, group executive for the international financial services unit, said in a statement.

There are about 400,000 Indians in Australia who are the main targets for CBA's remittance service, the company said. Fifty-two per cent of the remittances to the south Asian country are presently being handled by the bank.