PNB to open branch in Singapore
Punjab National Bank could be among the first Indian banks to open a branch in Singapore after the CECA between the two countries.
New Delhi, Jul 28 (PTI) Punjab National Bank could be among the first Indian banks to open a branch in Singapore after the two countries signed the Comprehensive Economic Cooperation Agreement.
PNB, which has till now only one foreign branch in Kabul, has applied to RBI for license to open more foreign branches including those in Singapore and Hong Kong, Bank CMD S C Gupta told mediapersons. But RBI may take some months for giving the nod.
As per CECA, Singapore has agreed to grant Qualified Full Banking privileges to three Indian banks with or without operations in Singapore, the agreement said.
Singapore is awaiting applications from Indian banks in this regard. Three of the banks, which meet prudential norms set by Central Bank of Singapore, would be granted the privileges.
"This will provide better market access to Indian banks in Singapore," according to CECA.
India has also allowed three Singapore banks--Development Bank of Singapore Holdings, United Overseas Bank Ltd and Overseas Chinese Banking Corporation Ltd to set up wholly-owned subsidiaries in India.
PNB has applied for opening branches Canada and Australia, besides converting its representative office in UK to a full-fledged branch, Gupta said.
"Our first priority is opening branches in Singapore and Hong Kong, given huge opportunities in the two regions," the PNB CMD said.
The two branches will be followed by a branch in Canada, while a branch in Australia may come up subsequently.
PNB has representative offices in Almaty in Kazhaksthan, Shanghai in China and Dubai (UAE), besides the UK.