Eyeing overseas ambitions, India’s largest private lender HDFC Bank Ltd, is eyeing to launch its first branch in Singapore, news agency Bloomberg has said. HDFC Bank, which merged with its mortgage financier Housing Development Finance Corp. (HDFC) last year, has applied to the Monetary Authority of Singapore for a banking licence and is awaiting approval, citing sources privy to the development, the news agency stated. One of the sources told Bloomberg that it is not clear what kind of banking licence HDFC Bank is seeking in Singapore.
According to the report, the home-grown private lender is seeking a bigger presence abroad to tap the Indian diaspora for savings and term deposits, as well as to cross-sell more products, including mortgages. HDFC has been focusing on deepening its reach in India through loans to retail customers.
HDFC Bank did not respond to an email by Bloomberg seeking comment. “As a matter of policy, MAS does not comment on our dealings with financial institutions,” according to a spokesperson from the Singapore regulator.
Singapore, with a population of about 6 million people, houses a large India diaspora. About 6,50,000 non-resident and persons of Indian origin live in the city-state, according to Indian government data.
Currently, HDFC Bank not licenced or regulated by the MAS, according to its website. It only provides home loans-related advisory services for the purchase of properties in India, the website states.
As per Bloomberg, the categories of banking licences in Singapore encompass full banks, qualifying full banks and wholesale banks, which impose varying levels of restrictions on the lenders’ activities. State Bank of India and ICICI Bank hold qualifying full banking licences, alongside eight other banks like Bank of China Ltd. and BNP Paribas SA. Such licences are open only to foreign banks and allow them to have additional branches and/or off-premise ATMs as well as to share ATMs among themselves, according to the Association of Banks in Singapore’s website.
The MAS regulates and supervises more than 150 deposit-taking institutions in Singapore, ranging from full banks to finance companies, according to its website. Besides Singapore, HDFC Bank also has presence in markets such as London, Hong Kong, and Bahrain.
The bank has a total customer base of 93 million at the end of the December quarter (Q3) compared with 91 million in the preceding three-month period.