ICICI Bank gets US nod to set up branch in New York

ICICI Bank gets US nod to set up branch in New York

New York: The US regulators have given permission to ICICI Bank, the second largest financial lender in India with assets worth over $91 billion, to open a branch here.

The branch would engage in wholesale banking business, including trade financing and factoring services to US-based subsidiaries of Indian firms, the US Federal Reserve said.

Mumbai-based bank engages primarily in corporate and retail banking and also has foreign exchange operations. Through its subsidiaries, the bank provides insurance, brokerage, investment banking and asset management services.

The bank, the US Fed said, has policies and procedures to comply with the Indian laws and regulations and the Reserve Bank of India guidelines regarding anti-money laundering.

Besides, it has also taken additional steps on its own to combat money laundering and other illicit activities.

Its application, they said, met the requirements of International Banking Act and it is also supervised by RBI.

The regulators also found the ICICI Bank’s risk management standards consistent with those established by the Basel Capital Accord and its capital is in excess of the minimum levels that would be required by the accord.

The Life Insurance Corporation of India and other government-owned companies together own 9.6% shares and are the largest shareholders.

The Singapore Government directly owns 1.8% of the bank’s shares, while another 6.5% is indirectly owned by a wholly-owned investment firm of Singapore’s Ministry of Finance.

Currently, the bank has representative office in New York and operates non banking activities. Besides, it also has centres in Canada, the UK, Bahrain, Russia and Sri Lanka.