The Hindu Business Line : Canara Bank to set up branch in Hong Kong

The Hong Kong Monetary Authority (HKMA) has approved Canara Bank's application for opening a branch in the region. Speaking to Business Line, the Canara Bank CMD, Mr M.B.N. Rao, said, "This branch will give a beach head for Indian trade into mainland China, where we already have a representative office." The bank's representative office in China is located in Shanghai. The branch licence by the HKMA is effective from July 19. At present, it has a deposit taking company in Hong Kong.

This office, Mr Rao said, would be upgraded into a branch. Consequently, the bank would be in a position to meet the stiff capitalisation norms applied by HKMA. Hong Kong follows a three-tiered policy - licensed banks, restricted licensed banks and deposit taking companies. However, under the existing regulations of the HKMA, restricted licence banks or foreign bank branches are allowed to convert their operations into subsidiaries after conducting banking operations for three years.

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