Canara Bank will soon become the sixth major Indian bank to open a branch in the East Midlands town of Leicester, which has a large population of Indian origin and has close business links with India.
Local business leaders have welcomed the bank's decision to open a branch in Leicester in March, which will involve the creation of 11 jobs.
Leicester will be Canara Bank's first branch outside London.
The town already has branches of Punjab National Bank, ICICI, Bank of India, Bank of Baroda and the State Bank of India.
Local economic development agency Prospect Leicestershire has worked with East Midlands Development Agency (Emda) and the East Midlands India Business Bureau to identify a suitable location for Canara Bank.
Nick Carter, chairman of Prospect Leicestershire, said: "It is very exciting that a significant international banking operation has chosen Leicester as the place to be."
"This provides further evidence of the growing trade between Leicestershire and India and will give confidence to businesses to develop trade and investment opportunities," he added.