ICICI Bank to go local in Singapore soon

The largest private sector lender ICICI Bank can soon operate as a local bank in Singapore, following an in-principal approval from the city-state.

"Singapore has given an in-principle approval to ICICI Bank as a qualified full bank (QFB) status. The Singapore Prime Minister has written to Prime Minister Manmohan Singh regarding this," said a senior Commerce Ministry official.

There are some formalities that need to be completed, official said, adding, the initial approval came some time back, that would allow the bank to open about 25 branches in the city-state.

Following the QFB status, ICICI Bank will be allowed to set up branches, ATMs, take deposits and disburse loans like a local bank in the island nation.

When contacted, ICICI Bank spokesperson said, "It is true that we have applied for a QFB status in Singapore and our application is under process."

ICICI Bank would be the second Indian bank to get QFB status after the State Bank, which got the permission last year.

Under the Comprehensive Economic Cooperation Agreement (CECA) with the government of Singapore, three Indian banks would get QFB status.

Following the QFB approval in October 2008, SBI opened three more branches. SBI was present in Singapore since 1977 with an offshore banking licence involved in commercial and wholesale banking.