Private sector lender Federal Bank has secured regulatory approval from the Reserve Bank of India (RBI) to foray into Bahrain, Kuwait and Singapore, news agency PTI reported.
The bank will commence operations in these three countries after securing domestic clearances in the respective countries. Federal Bank already has representative offices in the UAE.
Federal Bank CEO and managing director Shyam Srinivasan was quoted by the news agency as saying: “We have received the Reserve Bank nod for having representative offices in Bahrain, Kuwait and Singapore and are now awaiting clearances from local regulators in the host countries.”
However, he did not give any specify the timeframe in which the bank is expected to receive the local approvals.
The development comes at a time when multiple Indian state-run lenders are reducing their foreign presence in a step to streamline businesses and reduce operating costs.
However, private lenders, such as Yes Bank, have announced plans to strengthen their overseas operations recently.
Srinivasan also stated that the bank has no plans to strengthen its presence in India having not opened new brick and mortar branches in the last four years.
He said that the Federal Bank will continue to emphasise on providing digital offerings to its customers.