State Bank of India is the only other Indian lender to enjoy this status.
The country’s largest private sector lender, ICICI Bank, has received qualified full banking (QFB) privileges from the Monetary Authority of Singapore (MAS) for its branch operations in the city-state, the Indian lender announced today.
The licence permits ICICI Bank to conduct business from 25 locations in Singapore. “However, in the near term, the bank will focus on increasing its presence in corporate, commercial, wealth management and direct banking businesses, both in Singapore and in the Association of Southeast Asian Nations region, by capitalising on strong trade and investment flows with India,” said an ICICI Bank spokesperson.
The country’s largest lender, State Bank of India (SBI), is the only other Indian bank to enjoy QFB privileges in Singapore.
Under the Comprehensive Economic Cooperation Agreement between India and Singapore, implemented in August 2005, both are to provide QFB status to three banks from each other.
India has given QFB privileges to Development Bank of Singapore and United Overseas Bank.
As of December 31, 2009, the government of Singapore holds a 1.53 per cent stake in ICICI Bank.
Currently, the Singapore branch offers international loan syndication services, trade finance, comprehensive deposit and wealth management products and treasury operations to support the bank’s international operations.
Incidentally, the Singapore branch was the first overseas branch of ICICI Bank. MAS had granted ICICI Bank a licence to transact banking business in Singapore from August 1, 2003.
A little more than a quarter of the ICICI Bank’s asset book consists of international assets. As of December 31, 2009, the bank had international assets worth Rs 46,600 crore on its books.
The lender has presence in 18 countries apart from India and currently enjoys a full-bank status in Canada, the UK, Bahrain, Russia and Sri Lanka
ICICI Bank said it had no plans of setting up a subsidiary in Singapore as of now.
Chanda Kochhar, managing director and chief executive officer, ICICI Bank, said, “We are delighted to receive this approval since it will further strengthen our footprints in corporate, commercial, wealth management and direct banking services in Singapore. We expect to see significant increase in our client base in the region having strong India connections.”
