State-run Indian Bank, headquartered in Chennai, is planning to open a branch in Jaffna. It is also planning to open another branch in the central hills of the island.
Times of India quoted the Chairman and Managing Director of the Indian Bank T.M.Bhasin as saying that talks were in an advanced stage at the moment.
Banks have rushed to open branches in Jaffna after the 30-year war ended in May last year. Sri Lanka’s Central Bank has approved dozens of new Commercial banks in Jaffna, including one by Hong Kong based HSBC.
The report said that two months ago the Indian Bank sent representatives to the Jaffna region to evaluate the possibility of setting up a branch.
The Indian Bank already has a branch in Colombo and is also looking at opening a branch in Kandy. The bank has another overseas branch in Singapore