S’pore may approve 3 Indian banks’ applications, while India considers the same
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THE Monetary Authority of Singapore (MAS) said yesterday it is working with its Indian counterpart to review banking licence applications from institutions from both countries.The MAS was responding to an Economic Times report on Sunday that said MAS may soon announce a decision to grant full banking licences to three Indian banks — State Bank of India (SBI), Bank of India (BoI) and Bank of Baroda (BoB). Getting a full banking licence would allow these banks to open more branches and offer retail banking services.
The Indian paper also quoted a senior finance ministry official as saying, “we are told that SBI, BoI and BoB will be granted qualifying full banking status. That means we will also grant the same status to three banks from Singapore to operate in India.”In a statement, the MAS said: “The Reserve Bank of India and MAS are working closely to review the applications by banks to be set up or to expand in the respective jurisdiction. This will help enhance economic connectivity between India and Singapore.”
Once details are settled, appropriate announcements would be made, it added.
DBS Group Holdings opened a representative office in 1994 and upgraded that to a full bank in 1995, said a DBS spokesperson. It now has banking licences for Mumbai and New Delhi.
UOB said the bank has made a submission to open a branch in Mumbai, subject to approval from Indian regulatory authorities, while OCBC said they have not applied for an Indian banking licence. “While we will continue to review opportunities in India, our current focus takes the form of an offshore proposition. Despite our lack of branch presence in India today, we have been actively pursuing business opportunities there, focussed on the financing of trade flows between Singapore and India through partnerships with Indian financial institutions,” said Ms Koh Ching Ching, OCBC’s head of group corporate communications
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