HDFC Bank Eyes Singapore Expansion with Maiden Branch Application

India’s largest private sector lender, HDFC Bank Ltd., is setting its sights on a significant international move by seeking approval to open its first branch in Singapore. Following its landmark merger with Housing Development Finance Corp. last year, the bank is actively pursuing overseas opportunities.

Sources familiar with the matter reveal that HDFC Bank has applied to the Monetary Authority of Singapore (MAS) for a banking license, with the approval still pending. The specific type of license sought remains undisclosed.

The banking giant aims to establish a stronger global presence to leverage the Indian diaspora in Singapore for savings, term deposits, and cross-selling various products, including mortgages. At home, HDFC has been concentrating on expanding its footprint in India through retail customer loans.

While HDFC Bank did not respond to requests for comment, the MAS spokesperson stated, “As a matter of policy, MAS does not comment on our dealings with financial institutions.” Singapore, with nearly 6 million residents, hosts a substantial Indian diaspora of about 650,000 non-residents and persons of Indian origin. HDFC Bank’s move aligns with its strategy to tap into this demographic.

Presently, HDFC Bank is not licensed or regulated by the MAS, providing only home loans-related advisory services for property purchases in India. The categories of banking licenses in Singapore vary in restrictions, and if approved, HDFC Bank will join other foreign banks holding qualifying full banking licenses, allowing for expanded branches, off-premise ATMs, and shared ATM services, as outlined by the Association of Banks in Singapore.

The MAS, responsible for regulating over 150 deposit-taking institutions, plays a pivotal role in overseeing the banking landscape in Singapore.