THE Bank of India is set to launch a US$13 million branch in Phnom Penh, officials said Thursday, as Cambodia's banking sector expands further.

The bank is awaiting final approval from the National Bank of Cambodia (NBC) after filing the necessary documentation, NBC Director General Tal Nai Im said.

It should open six months after getting licensed by the NBC, Tal Nai Im told the Post.

Bank of India is a state-owned bank with total assets of $43.5 billion. It already has branches in Singapore, Vietnam and Thailand, said Saurav Ray, first secretary of the Indian Embassy.

"The Bank of India is one of the largest banks in India," she said. "The competition is very tough in any part of the world," she added, and "you have to be very competitive."

There are currently 19 commercial banks and six specialised banks in Cambodia, according the NBC's March 2008 report. Sixteen licensed microfinance institutions and 25 registered financial NGOs also round out the sector.

Trade between India and Cambodia was at $54 million in 2006 and 2007.