HDFC Bank from India is pursuing expansion into Singapore by submitting an application for a banking license to the Monetary Authority of Singapore (MAS).
HDFC Bank Ltd, India’s largest private sector lender, is strategically seeking to establish its first branch in Singapore. This move comes following its notable merger with Housing Development Finance Corp. last year, as HDFC Bank aims to broaden its global presence.
License Application with Monetary Authority of Singapore
Reports indicate that HDFC Bank has applied to the Monetary Authority of Singapore (MAS) for a banking license and is currently awaiting approval. The details regarding the type of license sought remain undisclosed, as the application process is surrounded by confidentiality.
Overseas Expansion Strategy
HDFC Bank’s decision to establish a foothold in Singapore is in line with its overarching strategy to expand its global presence. The bank intends to leverage the Indian diaspora in Singapore by attracting savings and term deposits, as well as promoting cross-selling opportunities for various products, including mortgages.
Focus on Indian Diaspora in Singapore
Given Singapore’s sizable Indian diaspora, numbering nearly 650,000 non-residents and persons of Indian origin, HDFC Bank recognizes a significant market opportunity. The bank is strategically positioning itself to provide a comprehensive suite of financial products and services specifically tailored to meet the needs of the Indian community in Singapore.
MAS Response and Regulatory Landscape
MAS, in response to inquiries, has upheld its policy of refraining from commenting on interactions with financial institutions. Currently, HDFC Bank does not hold a license or regulation from MAS, and its activities in Singapore are restricted to providing advisory services related to home loans for property purchases in India.
Categories of Banking Licenses in Singapore
HDFC Bank’s application for a banking license in Singapore indicates its intention to navigate the regulatory frameworks governing full banks, qualifying full banks, and wholesale banks. Each type of license imposes different levels of restrictions on banking activities. By seeking approval for a license, HDFC Bank aims to establish a more comprehensive banking presence in Singapore.
International Presence Beyond Singapore
In addition to Singapore, HDFC Bank has expanded its presence in key global financial hubs such as London, Hong Kong, and Bahrain. This strategic expansion aligns with the bank’s broader objective of diversifying its geographical footprint and accessing international markets.
