The bank said that with the approval from the Indian central bank, it can establish commercial and wholesale banking operations in India for the first time and is sue to launch its first branch in Mumbai, where it has been operating through a "representative" office since 2007.
Under the license, Westpac will also undertake rupee-denominated transactions, said the bank.
Westpac Institutional Bank group executive Rob Whitfield said the move will help Westpac capitalize on growing trade and investment between India and Australia, particularly in the agriculture and resources sectors.
"India is Australia’s fifth-largest trading partner and fourth-largest export market so it is a very important market for our customers," Whitfield said.
Westpac’s general manager of Asia, Yogan Rasanayakam, said the Indian branch would primarily focus on trade finance, working capital and foreign exchange transactions.
"This will allow us to support our Australian and Indian customers in India like we would do in our George Street branch in Sydney," Mr Rasanayakam said.
Westpac has branch licenses in Beijing, Shanghai, Hong Kong and Singapore and it said that that further Asian expansion will be selective.
