Korean banks secure clearance to expand foothold in India

KEB Hana Bank and KB Kookmin Bank are looking to tap into India's growing wealth.

Bloomberg reports that South Korea's KEB Hana Bank and KB Kookmin Bank have successfully secured government approval to expand their presence in India as they join Bank of China and Iran’s Bank Pasargad who have earlier received the green light from the Reserve Bank of India.

Also read: Indian court affirms ruling banning bank dealings in virtual currencies

KEB Hana Bank is looking to open its second branch in the city whilst KB Kookmin Bank is aiming to convert its Gurugram office into a branch. The move comes as fellow Korean lenders Shinhan Bank and Woori Bank have been aggressively expanding into Vietnam in an effort to capture further growth opportunities beyond their home turf.

Also read: India's $210b bad debt burden is luring profit-hungry offshore investors

However, the proposals of ICBC and Cooperative RaboBank to open second branches in the city have been deferred following a few concerns whilst Maybank's proposal has been rejected. According to guidelines from the RBi, foreign banks can function through the branch mode or wholly-owned subsidiary mode, which treats them on a par with domestic banks with caveats.

Here’s more from Bloomberg:

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Japan’s SMBC opens a branch in India’s GIFT City

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