SBI, ICICI Bank to start operations in S'pore

Singapore has agreed to allow the State Bank of India and ICICI Bank to launch full banking operations in the South-East Asian country, under the Comprehensive Economic Cooperation Agreement (CECA) with India.

"Two of our banks (SBI and ICICI) and nine from Singapore will be granted the Qualified Full Banking (QFB) licence by the two countries," said a senior commerce ministry official.

The Reserve Bank of India and the Monetary Authority of Singapore would be working on the modalities for allowing banks from the respective countries to start full operations. "Hopefully, all the modalities would be in place by December," the official remarked.

Under the QFB licence, foreign banks are given national treatment by the host country. The proposal in this regard was taken up at the CECA review meeting attended by officials of the two countries.

The CECA between India and Singapore was implemented two years ago and covers investment, trade in services and merchandise goods.

Marking increased operation in the financial services sector, the Singapore-government owned Temasek has bought 10 per cent stake in ICICI, the official added.