July 25, 2010 (LBO) – State-run Indian Bank headquartered in Chennai, India is planning to open a branch in Sri Lanka’s former war torn Northern Jaffna peninsular and also in the central hills of the island, a media report said. The bank has another overseas branch in Singapore and is also looking at opening one in Jakarta, Indonesia, the report said. “Talks are in an advanced stage at the moment,” the Times of India quoted the chairman and managing director T M Bhasin of Indian Bank as saying.
Banks have rushed to open branches in Jaffna after the 30-year war ended in May 2009. Sri Lanka’s central bank has approved dozens of new commercial banks in Jaffna, including one by Hong Kong based HSBC.
Two months ago the Indian Bank has sent representatives to the Jaffna region to evaluvate the possibility of setting up a branch, the report said.
The Indian Bank already has a branch in Sri Lanka’s capital Colombo and is also looking at opening a branch in Kandy, a city in the hill country.