HDFC Bank Pursues Singapore Banking License in Strategic Move to Tap Indian Diaspora Abroad

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HDFC Bank has submitted an application to the Monetary Authority of Singapore (MAS) for a banking license, currently awaiting approval as reported by confidential sources. The nature of the banking license sought remains undisclosed.

The move aligns with HDFC Bank’s broader strategy to enhance its global footprint, targeting the Indian diaspora for savings, term deposits, and expanded product offerings, including mortgages. Concurrently, the bank continues its focus on consolidating its position in India by extending loans to retail customers.

Despite efforts to reach HDFC Bank for comment, the institution remained unresponsive. A spokesperson from the MAS adhered to the regulator’s policy of refraining from commenting on dealings with financial institutions.

Singapore, home to nearly 6 million people, harbors a significant Indian diaspora of approximately 650,000 non-residents and persons of Indian origin, according to Indian government data.

Presently, HDFC Bank is not licensed or regulated by the MAS, confining its services to home loans-related advisory for property purchases in India.

The spectrum of banking licenses in Singapore encompasses full banks, qualifying full banks, and wholesale banks, each imposing distinct restrictions on lenders’ activities. Notably, State Bank of India and ICICI Bank Ltd. hold qualifying full banking licenses, a privilege extended to select foreign banks allowing additional branches, off-premise ATMs, and shared ATMs among themselves.

MAS, overseeing 150 deposit-taking institutions in Singapore, ranging from full banks to finance companies, exercises regulatory authority over the sector.

Beyond Singapore, HDFC Bank has established a presence in global markets such as London, Hong Kong, and Bahrain. 

As of the December quarter, HDFC Bank reported a total customer base of 93 million, reflecting a notable increase from the preceding quarter’s 91 million, according to an investor presentation.