ICICI Bank in South Africa

ICICI Bank Concludes Operations in South Africa Amid Strategic Shift

Johannesburg, South Africa – February 12, 2023

ICICI Bank, India’s second-largest private lender, has officially ceased its operations in South Africa, marking the end of its eight-year presence in the country. The bank’s Johannesburg branch, which commenced operations in January 2016, was the first Indian private sector bank to establish a foothold in Africa. (icicibank.com)

The Johannesburg branch initially focused on corporate banking activities, providing financial assistance to Indian joint ventures and subsidiaries across Africa, as well as offering trade finance and short-term funding for companies engaged in trade with India. (icicibank.com)

In February 2023, the South African Reserve Bank issued Exchange Control Circular No. 1/2023, announcing the cancellation of ICICI Bank Limited, South Africa Branch, as an Authorized Dealer in foreign exchange, effective immediately. This decision led to the removal of the bank’s name from the list of Authorized Dealers in the Currency and Exchanges Manual. (exchangecontrol.co.za)

The closure of ICICI Bank’s South African operations reflects a strategic realignment of the bank’s international presence. While the Johannesburg branch was the first Indian private sector bank to open a branch in Africa, it faced challenges in gaining significant traction within the highly competitive South African banking market. (businesslive.co.za)

This development also underscores the dynamic nature of the banking sector, where institutions continually reassess their global strategies to optimize operations and focus on markets that align with their long-term objectives.