Canara Bank to expand in UK

Canara Bank will soon become the sixth major Indian bank to open a branch in the East Midlands town of Leicester, which has a large population of Indian origin and has close business links with India.

Local business leaders have welcomed the bank's decision to open a branch in Leicester in March, which will involve the creation of 11 jobs.

Leicester will be Canara Bank's first branch outside London.

The town already has branches of Punjab National Bank, ICICI, Bank of India, Bank of Baroda and the State Bank of India.

Local economic development agency Prospect Leicestershire has worked with East Midlands Development Agency (Emda) and the East Midlands India Business Bureau to identify a suitable location for Canara Bank.

Nick Carter, chairman of Prospect Leicestershire, said: "It is very exciting that a significant international banking operation has chosen Leicester as the place to be."

"This provides further evidence of the growing trade between Leicestershire and India and will give confidence to businesses to develop trade and investment opportunities," he added.

"I definitely welcome the move by Canara into Leicester. Leicester already has a number of Indian banks and these smaller branches often provide more personal service than the mainstream banks, which has been a big help to businesses since the crisis started in the banking world," Leicestershire Asian Business Association director Jaffer Kapasi said.

Founded as the 'Canara Bank Hindu Permanent Fund' in 1906, by late Sri Ammembal Subba Rao Pai, a philanthropist, it grew into a limited company as Canara Bank in 1910 and became Canara Bank in 1969 after nationalisation.