After successfully completing a historic merger with mortgage financier Housing Development Finance Corp. last year, HDFC Bank Ltd., the largest private sector lender in India, is attempting to establish its first branch in Singapore, indicating its aspirations to expand internationally.
According to people with knowledge of the situation, the bank has applied for and is awaiting permission from the Monetary Authority of Singapore for a banking license. One of the people, who wished to remain anonymous because the material is private, stated that it is unclear what kind of banking license HDFC Bank is requesting in Singapore.
According to the sources, the banking behemoth is looking to expand internationally in order to reach the Indian diaspora and offer savings and term deposits, as well as to cross-sell a wider range of goods, such as mortgages. At home, HDFC has been concentrating on expanding its client base through retail loans in the most populous nation on earth. When asked to comment via email, HDFC Bank did not reply. The Singapore regulator's spokeswoman stated, "As a matter of policy, MAS does not comment on our dealings with financial institutions."
With a population of about 6 million, Singapore is home to a sizable Indian diaspora. The city-state is home to about 650,000 non-residents and people of Indian descent, based on data from the Indian government.
HDFC Bank's website states that the bank is not currently licensed or governed by the MAS. According to the website, it solely offers consulting services connected to house loans for the purchase of homes in India.
In Singapore, there are three types of banking licenses: full, qualifying, and wholesale. Each type of license has certain limitations on the activities of the lenders. Along with eight other banks, including Bank of China Ltd. and BNP Paribas SA, State Bank of India and ICICI Bank Ltd. are holders of qualifying full banking licenses. According to the website of the Association of Banks in Singapore, these licenses are exclusive to international banks and permit them to share ATMs among themselves, as well as to open new branches and/or off-premise ATMs.
On its website, the MAS states that it oversees and controls more than 150 deposit-taking establishments in Singapore, from finance businesses to entire banks. In addition to Singapore, HDFC Bank is present in Bahrain, Hong Kong, and London. According to an investor presentation, the India bank had 93 million overall customers at the end of the December quarter, up from 91 million during the previous three months.
