DBS deal part of Indo-Singapore quid pro quo?

MUMBAI: Development Bank of Singapore (DBS), one of the largest banks in South Asia, is also the brink of getting a retail banking licence in India.

“It’s in the final stages of discussion,” RBI deputy governor V Leeladhar said on Monday.

What happens with DBS will also be of keen interest to SBI and ICICI Bank, since both are awaiting a full banking licence from the Monetary Authority of Singapore (MAS).  

However, it is not clear as to how long the process for a licence for DBS will take. Last June, the RBI had allowed Singaporean agencies Temasek Holdings and the Government of Singapore Investment Corp (GIC) to hold up to 10% individual stake each in ICICI Bank, as a one-off.

A DBS licence in India may just open the door for Indian banks to open a branch in the South East Asian economic hub.