UPDATE 1-S'pore DBS expects consent for India expansion

(Updates with DBS response, recasts lead)

SINGAPORE, March 17 (Reuters) - DBS Group (DBSM.SI: Quote, Profile, Research, Stock Buzz), Southeast Asia's largest lender, said on Monday it is optimistic about obtaining approval for its expansion in India, but has yet to receive confirmation from India's central bank. "We are optimistic that we will receive the go-ahead to exapnd in India soon. However, as of now, nothing is confirmed," said Karen Ngui, a spokeswoman for the Singapore bank.

A local newspaper on Monday cited unnamed sources as saying that DBS will soon receive approval from India's central bank to open six to eight new branches in India.

DBS, which operates a branch each in Mumbai and New Delhi, might be allowed a new branch in a metropolitan city such as Mumbai or Chennai for every branch that it opens in a Tier II city such as Varanasi or Moradabad, the Straits Times reported.

A central bank spokesman declined to confirm or deny the decision regarding DBS, the report added. (Reporting by Daryl Loo; Editing by Ben Tan)