Public sector lender, Indian Bank has said that it has received approval from Reserve Bank of India to open a branch in Jaffna, Sri Lanka. This would be the second branch of the bank in Sri Lanka.

The new branch is expected to start operating by December this year.

"We have just got licence from RBI for opening a branch in Jaffna and we are in process of seeking approval from the Sri Lankan authorities for the same," Indian Bank Chairman and Managing Director T M Bhasin said.

The bank currently has a branch in Colombo. It also has a branch in Singapore.

"We hope make the Jaffna branch operational by the end of December this year or early January," said Bhasin.

The bank is also harboring ideas of opening a branch at Kandy, he said.

Bhasin also added that the bank plans to set up 100 more branches in the domestic mainland in the upcoming 5 months.