ANZ Banking Group Ltd has been granted approval by the Reserve Bank of India (RBI) for a foreign banking licence, allowing the firm to open a branch in Mumbai during the first half of 2011.
The licence was granted after ANZ confirmed the location of the branch in the city's extended business district of Worli-Prabhadevi.
The location was a major regulatory requirement, which became significant following in-principle approval from the RBI in March.
ANZ chief executive for the Asia Pacific, Europe and Americas regions, Alex Thursby, said the banking licence will help ANZ to grow in India and towards the dream of becoming a super regional bank in the Asia Pacific.
"India is Australia's fourth-largest export market, driven by demand for natural resources, with exports totalling more than US$11.7 billion in 2009, while trade between India and other parts of Asia represents US$139.6 billion in flows annually," Mr Thursby said in a statement on Monday.
"To support these growing business and economic ties, our business in India will provide corporate and institutional banking services, connecting customers through ANZ's regional network across the Asia Pacific region, including Australia and New Zealand as well as the Middle East, Europe and America."
The ANZ business in India will initially look at corporate and institutional banking, but will broaden to include individuals over time.
At first, services will include trade finance, debt capital markets, cash and payments, and funding and hedging solutions.
At 1457 AEDT, shares in ANZ were up 53 cents, or 2.26 per cent, at $23.94.