According to individuals familiar with the matter, the HDFC Bank has submitted an application to the Monetary Authority of Singapore for a banking license and is presently awaiting approval.
India’s largest private sector lender, HDFC Bank Ltd, is pursuing the establishment of its inaugural branch in Singapore, signaling its global aspirations following the significant merger with mortgage financier Housing Development Finance Corp. last year.
The bank has applied to the Monetary Authority of Singapore for a banking license and is awaiting approval, according to sources familiar with the matter.
It is not clear what kind of banking license HDFC Bank is seeking in Singapore, said one of the people, who declined to be identified as the information is confidential.
The banking behemoth is actively pursuing an expanded global footprint, aiming to leverage the Indian diaspora for savings, term deposits, and cross-selling initiatives, including mortgages, as indicated by informed sources.
Simultaneously, within India, HDFC directs its efforts towards deepening market penetration, particularly in the world’s most populous nation, by providing loans to retail customers.
HDFC Bank’s response to an email seeking comment remains outstanding. A spokesperson from the Monetary Authority of Singapore (MAS) stated, “As a matter of policy, MAS does not comment on our dealings with financial institutions.”
Singapore, with an approximate population of 6 million, hosts a significant Indian diaspora. According to Indian government data, around 650,000 non-resident individuals and persons of Indian origin reside in the city-state.
This strategic move by HDFC signifies a proactive approach to tapping into the global Indian community and diversifying its financial offerings both internationally and domestically.
As per its website, HDFC Bank currently operates without licensing or regulation by the Monetary Authority of Singapore (MAS). The bank explicitly outlines its services, limited to providing advisory services related to home loans for property purchases in India.
Singapore’s banking licenses are categorized into full banks, qualifying full banks, and wholesale banks, each imposing varying degrees of restrictions on the activities of financial institutions.
State Bank of India and ICICI Bank Ltd. hold qualifying full banking licenses, a category accessible to foreign banks.
This designation allows them additional branches, off-premise ATMs, and the sharing of ATMs among themselves, as detailed by the Association of Banks in Singapore’s website. Notably, HDFC Bank does not currently fall under these licensed categories in Singapore.
The distinct positioning of HDFC Bank’s services, focusing on home loans-related advisory services for Indian property purchases, aligns with its current absence from the MAS regulatory framework.
In contrast, State Bank of India and ICICI Bank Ltd., among others, benefit from qualifying full banking licenses, allowing them expanded operational capabilities within Singapore.
The provided information underscores the varied regulatory landscapes for banks in Singapore and highlights HDFC Bank’s specific niche within this context.
The Monetary Authority of Singapore (MAS) oversees over 150 deposit-taking institutions in Singapore, spanning a spectrum from full banks to finance companies, as outlined on its official website.
In addition to its operations in Singapore, HDFC Bank extends its presence to other global markets such as London, Hong Kong, and Bahrain.
As of the end of the December quarter, HDFC Bank, an Indian financial institution, reported a cumulative customer base of 93 million, showing growth from the preceding three-month period when it stood at 91 million.
This information was presented in an investor presentation, emphasizing the bank’s expanding reach and customer engagement globally.
