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ICICI Bank, India's second-largest bank by assets, has received a provisional banking license from the Central Bank of Sri Lanka to commence operations in the island, an ICICI Bank official said Wednesday. "We are in the process of incorporating a bank," Nalin Aggrawal, the head of operations in Colombo, told Dow Jones Newswires.
ICICI Bank would be the 12th foreign bank to set up operations in the island.
Aggrawal did not disclose details of the bank's plans.
A banking source said ICICI Bank planned to offer banking services in the metropolitan area centered on Colombo, and commence operations in October.
He said the bank would tap into a growing base of Indian corporate clients and Sri Lankan companies doing business with Indian firms.
Dinesh Warusavitharana, assistant vice president at Fitch Ratings Lanka Ltd.
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, said the bank would need to invest Rs.
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2.5 billion ($25 million) as minimum capital and would seek adequate return on capital.
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