Kotak Mahindra Bank (Kotak), India's fourth largest private sector bank, Friday announced that it has received Reserve Bank of India's (RBI) approval to set up its branch in Dubai International Financial Centre (DIFC), Dubai. This will be the first international branch of Kotak.

The approval from RBI is subject to the necessary approvals to be received from the host regulator viz., Dubai Financial Services Authority (DFSA).

DIFC is one of the leading global financial centers with sizeable business opportunities. The strategy behind launching a branch in DIFC is to access off-shore markets and improve capabilities in forex operations.

Through this branch, Kotak will be able to raise off-shore deposits from Individuals and non-individuals and also offer off-shore asset products. It will enable Kotak to participate in financing the increasing global trade flows with India, provide loans and develop a platform to build the bank's syndication and structuring capabilities, thereby create a stronger franchise.

In addition to the proposed branch of KMBL in DIFC, Kotak Mahindra Group has international offices in London, New York, Texas, California, Dubai, Abu Dhabi, Mauritius and Singapore.

Shares of the bank declined Rs 5.55, or 0.68%, to settle at Rs 814.45. The total volume of shares traded was 357,679 at the BSE (Friday).