DBS gets 8 new branches; SBI goes to S’pore

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India and Singapore seem to have finally sorted out the deadlock over the issue of branch licences to banks from each other’s countries. DBS Bank, one of the largest banks in Singapore and which has been waiting since 2005, has now been given approval to set up eight new branches in India by the Reserve Bank of India (RBI).

In a reciprocal gesture, the Singapore government almost simultaneously gave its approval to state-owned State Bank of India, the country’s largest bank, to open branches in that country. India’s largest private sector bank, ICICI Bank, is also expected to receive permission from Singapore to set up shop, shortly.

RBI has given DBS quick clearance for its branches in India, even as other major foreign banks like Standard Chartered Bank and HSBC are still awaiting similar permission.

Earlier, in a controversial move, the Monetary Authority of Singapore had asked for a government guarantee before allowing SBI’s entry into Singapore, which New Delhi had refused to furnish.

DBS already has two branches, in New Delhi and Mumbai, and would now spread its netweork across Bangalore, Chennai, Kolkata, Moradabad, Nashik, Pune, Salem and Surat. Speaking to FE, Pranam Wahi, chief executive officer, DBS Bank, India, said the bank would open all these branches in the next two quarters. “We will bring in capital as and when necessary,’’ he said.