The bank added that it will also apply for a Qualifying Full Bank (QFB) licence, if one becomes available.

RHB Bank Singapore's country head, Mr Lim Hun Joo, said on Thursday the bank, which has seven outlets here, wants to increase its branch network but is unable to as it possesses a Full Bank Licence.

A bank with a QFB licence can open up to 25 branches.

'We'll be interested to get a QFB licence, if we can,' Mr Lim told The Straits Times on Thursday.

RHB Bank's interest in a QFB licence comes at a time when others may be giving theirs up. Royal Bank of Scotland, which is looking to sell its retail and commercial assets in Singapore, is one that is reviewing its QFB licence.

RHB Bank, which set up here in 1961, offers a range of financial products and services, including consumer, commercial and corporate, treasury, and investment banking.

The bank employs over 300 staff in Singapore.

Mr Lim said the Islamic desk in Singapore will initially concentrate on wholesale Islamic banking services.

Its products will encompass debt capital fund raising, such as sukuk issuances. Sukuk is a financial certificate, like a bond in Western finance, that complies with Islamic law.

Read the full report in Friday's edition of The Straits Times.