Roads have been cleared for the India based ICICI bank to act as a local lender in Singapore as the government is set to award it a full fledged banking license in Singapore. The license would enable India's No. 2 bank to set up to 15 branches, ATMs and disburse loans in the country.

ICICI bank would be the second Indian bank to operate as a qualified full bank (QFB) in Singapore as government-run State Bank of India (SBI) already enjoying the special status under QFB since last year. It is the third license given to a foreign country bank by Singapore after it had awarded similar license to a UK and a Canada based bank.

The bank is expected to start its Singapore operations in a few months after completing all necessary formalities required under the Monetary Authority of Singapore (MAS), the country's apex bank.

A Senior Commerce Ministry Official added, "Singapore has given an in-principle approval to ICICI Bank as a qualified full bank (QFB) status."

Singapore bears close trade and diplomatic relations with India and sets to play a key role through ASEAN, a regional grouping of Southeast Asian countries.