News: Indian banks turn Singapore bound
(PTI 10/09/2006) New Delhi - Realising the strategic economic importance of Singapore, Indian banks are looking to expand their operations in the country.
Two leading domestic players -- ICICI Bank and State Bank of India have already sought "Qualified Full Bank" permission in the city-state.
Taking advantage of the Comprehensive Economic Cooperation Agreement (CECA) between India and Singapore, SBI and ICICI Bank are interested in joining the league of six global majors currently operating as QFBs there.
Citibank NA, HSBC, BNP Paribas, ABN Amro, Standard Chartered and Malayan Banking Berhad are the six banks enjoying QFB status in Singapore.
Given QFB status, which allows them to raise retail deposits and operate 25 centres in Singapore.
An ICICI Bank official told PTI that it has submitted request for QFB status to Monetary Authority of Singapore (MAS) -- the regulatory authority of Singapore.
Currently, ICICI Bank operates as an offshore branch in Singapore which offers financing to Indian corporates and serve Indian Community in general.
A MAS spokesperson told from Singapore that the country would grant Wholesale Banking licenses and up to three qualifying Full Bank licenses to Indian banks that meet its admission criteria.
However, the agreement does not provide for automatic entry, he said, adding that as with all Financial Institutions seeking entry into Singapore, "applicants need to meet our prudential standards."
Without disclosing the names of Indian banks which have applied for the status, the spokesperson said some Indian banks have applied and we are working with RBI to review the applications and will make an announcement in due course.
There are already eight Indian Banks licensed to operate in Singapore. "This is one of the highest number of banking entities from a single country," he said.
Of the eight, four banks - Indian Bank, UCO Bank, Bank of India and Indian Overseas Bank have full bank licenses and can access retail market by offering whole range of banking activities.
The other four banks - SBI, ICICI, Bank of Baroda and UTI Bank - operate in the wholesale segment, and are licencesed as merchant banks or offshore bank.
Bank of Baroda and UTI bank were admitted after CECA he said, adding in contrast, only one Singapore bank --DBS -- has presence in India with two branches.
Two leading domestic players -- ICICI Bank and State Bank of India have already sought "Qualified Full Bank" permission in the city-state.
Taking advantage of the Comprehensive Economic Cooperation Agreement (CECA) between India and Singapore, SBI and ICICI Bank are interested in joining the league of six global majors currently operating as QFBs there.
Citibank NA, HSBC, BNP Paribas, ABN Amro, Standard Chartered and Malayan Banking Berhad are the six banks enjoying QFB status in Singapore.
Given QFB status, which allows them to raise retail deposits and operate 25 centres in Singapore.
An ICICI Bank official told PTI that it has submitted request for QFB status to Monetary Authority of Singapore (MAS) -- the regulatory authority of Singapore.
Currently, ICICI Bank operates as an offshore branch in Singapore which offers financing to Indian corporates and serve Indian Community in general.
A MAS spokesperson told from Singapore that the country would grant Wholesale Banking licenses and up to three qualifying Full Bank licenses to Indian banks that meet its admission criteria.
However, the agreement does not provide for automatic entry, he said, adding that as with all Financial Institutions seeking entry into Singapore, "applicants need to meet our prudential standards."
Without disclosing the names of Indian banks which have applied for the status, the spokesperson said some Indian banks have applied and we are working with RBI to review the applications and will make an announcement in due course.
There are already eight Indian Banks licensed to operate in Singapore. "This is one of the highest number of banking entities from a single country," he said.
Of the eight, four banks - Indian Bank, UCO Bank, Bank of India and Indian Overseas Bank have full bank licenses and can access retail market by offering whole range of banking activities.
The other four banks - SBI, ICICI, Bank of Baroda and UTI Bank - operate in the wholesale segment, and are licencesed as merchant banks or offshore bank.
Bank of Baroda and UTI bank were admitted after CECA he said, adding in contrast, only one Singapore bank --DBS -- has presence in India with two branches.
posted by InCar Group Press Room at 10:48
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