FOREIGN BANKS IN INDIA

A PROJECT ON

The Strategy Of Pepsi In India

IN THE SUBJECT

SUBMITTED BY

Parishi Shah
A049
MCom Part-I in Banking & Finance
UNDER THE GUIDANCE OF

Prof. Prerna Sharma

TO
UNIVERSITY OF MUMBAI
FOR
MASTER OF COMMERCE PROGRAMME (SEMESTER - I)
In
BANKING & FINANCE
YEAR: 2013-14
SVKMS
Page
1

FOREIGN BANKS IN INDIA

NARSEE MONJEE COLLEGE OF COMMERCE
&ECONOMICS
VILE PARLE (W), MUMBAI 400056.

Page
2

FOREIGN BANKS IN INDIA

Page
3

FOREIGN BANKS IN INDIA

Page
4

FOREIGN BANKS IN INDIA

Page
5

FOREIGN BANKS IN INDIA

Introduction
Meaning- A type of foreign bank that is obligated to follow the regulations of both the home and host
countries. Because the foreign branch banks' loan limits are based on the parent bank's capital, foreign
banks can provide more loans than subsidiary banks.
For example, suppose the SBI opens a foreign branch bank in America. The branch would be legally
obligated to follow both Indian and American banking regulations.
Foreign banks are those banks whose branch offices are in India but they are incorporated outside
India, and have their head office in a foreign country. These banks were allowed to set up their
subsidiaries in India from the year 2002. They have to operate their business by following all the rules
and regulations laid down by the RBI - Reserve Bank of India. They have to pay more attention to the
priority sector by giving them a special place in bank lending. These banks are expected to follow all
the banking regulations, just like any other domestic banks. The foreign banks can operate in India
only, if they have a sound financial status. They must have a minimum of 25 million US dollars in
minimum 3 branches. The first branch and the second branch must have 10 million US dollars each.
The third branch should have a minimum of 5 million US dollars. The foreign banks are permitted to
open up more branches in the country, if the performance of the bank is more than satisfactory and it
matches the criteria laid adopted by the domestic banks. There are 40 foreign banks from 21 different
countries operating in India. The business is conducted with the help of more than 205 branches. These
branches are located in more than 15 states which includes union territories. Apart from these banks
there are representative branches operating in India from 12 different countries.
Foreign banks who wish to open up branches in India have to apply to the RBI. These banks should be
able to satisfy the RBI regulations. The banks should also get permission from their home country to
set up branches in India. Other factors that are considered while approving the application of setting up
the presence of foreign banks in India are as follows:
Financial soundness of the foreign banks
Page
6

FOREIGN BANKS IN INDIA

Economic and political relations between the home country of the foreign
banks and India.
International ranking of the bank
Home country ranking of the bank
International presence of the bank
Rating given to the bank by international rating agencies
Foreign banks have played

an important role in the Indian

economy, especially in the

priority sectors. Globalization has

compelled

the

sector to reach out to more

customers

in

banking
to

expand their business. This meant

banking

businesses even in the foreign

countries. Many of the

private banks were interested in

expanding their business

all over the world. They opened up

opening

order

branches across the globe to serve large number of customers, and also improve service to the existing
customers. This change was a blessing for India. Currently, the foreign banks are growing
tremendously in India.
The services provided by these banks are very impressive. The presence of these banks in India brought
a lot of technical development. Banks of all categories, be it a domestic bank or an international bank,
started using the latest technologies to provide better service to the customers. The technological
development saved a lot time of the customers as well as the bankers. They introduced innovative and
unique banking practices in India.
The previous years witnessed cut throat competition in the banking sector with the presence of foreign
banks. The competition has compelled banks to come up with something new that no other bank can
provide to the customers. Banks are partially a part of the service industry. The main objective of all the
banks was to provide a better service to a large number of customers and look after their financial
Page
7

FOREIGN BANKS IN INDIA

requirements. Customer satisfaction was a priority for domestic banks as
well as the foreign banks.

Major foreign banks

Here is a list of some foreign banks operating in India
1. HSBC - Hong Kong and Shanghai Banking Corporation
2. ABN Amro Bank NV
3. Barclays Bank
4. Deutches Bank
5. Standard Charted Bank
6. National Australia Bank
7. Banca di Roma
8. Depfa Bank PLC
9. Banco Bibao Vizcaya Argentina SA
10. Citibank NA
11. BNP Paribas
12. American Express Bank Ltd.
13. Abu Dhabi Commercial Bank Ltd.
14. State Bank of Mauritius Ltd.
15. DBS Bank Ltd.
16. Bank of Ceylon
17. Scotia Bank
18. JP Morgan Chase Bank
19. Taib Bank
20. China Trust Commercial Bank
21. Arab Bangladesh Bank Ltd.
22. Bank of Muscat S.A.O.G
23. Bank of America NA
24. Oman International Bank S.A.O.G
25. Overseas Chinese Banking Corporation Ltd.
26. UFJ Bank Ltd. (The Sanwa Bank Ltd.)
27. The Siam Commercial Bank.
As at end November 2012, there were 41 foreign banks operating in India with 323 branches.
Another 46 foreign banks and their representative offices in India.
There are 1414 ATMS ( 284 onsite + 1,130 offsite )
Page
8

FOREIGN BANKS IN INDIA

Foreign Banks open its ATM in Rural area-29, Urban-268,
Semi Urban-22, Metropolitan-1095
Foreign Banks issued 4.92 million credit & 3.8 million debit card in 2012

(as on

November 2012)
As at end November 2012, there were 41 foreign banks operating in India with 323 branches.

Market capitalization of foreign banks:

banks in India: Income and Expenditure

Foreign

Another 46 foreign banks and their representative offices in India.

Page
9

FOREIGN BANKS IN INDIA

There are 1414 ATMS ( 284 onsite + 1,130 offsite )
Foreign Banks open its ATM in Rural area-29, Urban-268,
Semi Urban-22, Metropolitan-1095
Foreign Banks issued 4.92 million credit & 3.8 million debit card in 2012
November 2012)

Issue of ATM cards:

Share of bank groups in ATM (in thousands)

Public Sector Bank1,414 Private Sector Bank
36,079
58,193
Foreign Bank

Page
10

(as on

FOREIGN BANKS IN INDIA

Page
11

FOREIGN BANKS IN INDIA

Page
12

FOREIGN BANKS IN INDIA

Page
13

FOREIGN BANKS IN INDIA

Page
14

FOREIGN BANKS IN INDIA

Page
15

FOREIGN BANKS IN INDIA

Page
16

FOREIGN BANKS IN INDIA

Page
17

FOREIGN BANKS IN INDIA

Page
18

FOREIGN BANKS IN INDIA

Page
19

FOREIGN BANKS IN INDIA

Page
20

FOREIGN BANKS IN INDIA

Page
21

FOREIGN BANKS IN INDIA

Page
22

FOREIGN BANKS IN INDIA

Page
23

FOREIGN BANKS IN INDIA

Page
24

FOREIGN BANKS IN INDIA

Page
25

FOREIGN BANKS IN INDIA

Page
26

FOREIGN BANKS IN INDIA

Page
27

FOREIGN BANKS IN INDIA

Page
28

FOREIGN BANKS IN INDIA

Page
29

FOREIGN BANKS IN INDIA

Page
30

FOREIGN BANKS IN INDIA

Page
31

FOREIGN BANKS IN INDIA

Page
32

FOREIGN BANKS IN INDIA

Page
33

FOREIGN BANKS IN INDIA

Page
34

FOREIGN BANKS IN INDIA

Page
35

FOREIGN BANKS IN INDIA

Page
36

FOREIGN BANKS IN INDIA

Page
37

FOREIGN BANKS IN INDIA

Page
38

FOREIGN BANKS IN INDIA

Page
39

FOREIGN BANKS IN INDIA

Page
40

FOREIGN BANKS IN INDIA

Page
41

FOREIGN BANKS IN INDIA

Page
42