SBI, DBS to open branches on reciprocal basis

State Bank of India (SBI), the largest bank in the country, has received the approval of Monetary Authority of Singapore (MAS) for qualified full bank (QFB) status in Singapore. In a reciprocal move, the Reserve Bank of India (RBI) has granted eight branch licenses to the Singaporean bank, DBS Bank.

United Overseas Bank (UOB) of Singapore has also received RBI's nod to start banking operations in the country. UOB has been given one branch license.

The RBI and MAS have granted these approvals under the aegis of the Comprehensive Economic Cooperation Agreement (CECA) between the two countries. Both SBI and ICICI Bank have offshore banking units in Singapore.

"We have received a formal communication from the Monetary Authority of Singapore today. The SBI can now conduct business in Singaporean dollars. We have an approval to open 12 branches which can accept deposits in Singaporean dollars and lend domestically. We are exploring possibilities of joining the local automated teller machine network in Singapore,'' said a senior SBI executive.