Foreign Banks

INTRODUCTION
 Foreign Bank is a bank with a head office outside
the country in which it is located.
 It is obligated to follow the regulations of both
the home and host countries.
 Eg:If ICICI Bank opens its branch in
America.The Branch would be legally obligated to
follow both Indian and American banking
regulations.
 There as 46 foreign banks in India operating in
325 Branches.(as on September 30’ 2015)
 Another 39 foreign banks having their
representative offices in India
MAJOR FOREIGN BANKS IN INDIA
 Standard Chartered bank,came to India 150
years ago.
 Followed By HSBC in 1867, which operates in
nearly 51 branches.
 Later CitiBank came in India.

 The 3rd largest branch network.

 Followed By ABN AMRO

-31 Branches In India.It also offers specialized

services to International diamond and jewellery
Merchants.
 In 1921,Royal Bank of Scotland was established
with around 31 Branches throughout the country
with 1.4 million customers.

 Later In 2006,Barclays started serving

commercial customers;and 100 ATM Network.
ROLE OF FOREIGN BANKS
 Enhance competition in Banking sector.
 Technology and skill transfer.

 Both foreign and local Banks have been investing

on financial Innovation.
 Modern Banking services are expanded.

 Enhanced Customer satisfaction.

 Enhanced provision of foreign currency.

 Foreign Banks Participation in Foreign Exchange

and money market contribute for deepening of
financial system.
FUTURE OF FOREIGN BANKS
 Foreign Banks have opportunity in retail sector
as government has allowed overseas companies
in multi-brand retail and removed the cap on FDI
in single brand Retail.
 India is a profitable market for foreign lenders.

 RBI is also following a liberal branch licensing

policy for those foreign banks who want to go to
the unbanked pockets.
CONCLUSION

 After the set up of foreign banks in India,the

Banking sector In India is also become
competitive and accurate.
 India is expected to find a place in the strategy of
these banks given the country’s growth prospects.
 India’s GDP is seen growing at a pace of around
7% over the next few years,throwing up
opportunities for the banking sector.
THANK YOU