2. CONTENTS
INTRODUCTION
MAJOR FOREIGN BANKS IN INDIA
PUNCHLINE OF FOREIGN BANKS
ELIGIBILITY CRITERIA OF FOREIGN BANK
REASONS FOR FOREIGN BANK ENTER IN INDIA
ROLE OF FOREIGN BANKS IN INDIA
IMPORTANCE OF FOREIGN BANK
FUTURE OF FOREIGN BANKS IN INDIA
AN EXAMPLE OF FOREIGN BANK
INTRODUCTION
ABOUT HSBC
HSBC INDIA BANK FACT
HSBC HOLDINGS PLC
CONCLUSION
3. INTRODUCTION
A. A foreign bank that is obligated to follow regulations of both the home &
host countries.
B. 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.
C. These banks were allowed to set up their subsidiaries in India from the
year 2002.
D. They have to operate their business by following all the rules and
regulations laid down by the RBI - Reserve Bank of India.
E. These banks are expected to follow all the banking regulations, just like
any other domestic banks.
F. The foreign banks can operate in India only, if they have a sound financial
status.
G. They must have a minimum of 25 million US dollars in minimum 3
branches.
H. The first branch and the second branch must have 10 million US dollars
each.
4. I. The third branch should have a minimum of 5 million US dollars.
J. 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.
K. There are 40 foreign banks from 21 different countries operating in India.
L. The business is conducted with the help of more than 205 branches.
M. These branches are located in more than 15 states which includes union
territories.
N. Apart from these banks there are representative branches operating in
India from 12 different countries.
O. The services provided by these banks are very impressive.
P. The presence of these banks in India brought a lot of technical
development.
Q. 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.
R. The technological development saved a lot time of the customers as well
as the bankers.
S. They introduced innovative and unique banking practices in India.
9. PUNCHLINE OF FOREIGN BANKS
S.NO BANK NAME TAGLINE / PUNCHLINE
1. ABN-AMRO Bank Making More Possible
2. Abu Dhabi Commercial
Bank
Our vision. Your Future
3. BNP Paribas Bank BOC-the Bank you can
trust
4. Bank of Ceylon The bank for a changing
world
5. Citi Bank The Citi never sleeps
6. China Trust
Commercial Bank
We Are Family
10. 7. Deutsche Bank A Passion to Perform
8. HSBC The world's local bank
9. JP Morgan Chase Bank The right relationship is
everything
10. Standard Chartered
Bank
Your Right Partner
11. Scotia Bank You're richer than you
think
12. American Express Do More
13. Barclays Bank Fluent Finance
14. DBS Bank Living, Breathing Asia
15. Royal Bank of Scotland Make it happen
11. There is an eligibility criterion on
the basis of capital for the foreign
bank to work in India. They must
have at least 5 billion rupees
towards capital on establishment.
Moreover they must also be ready
to credit 18 % of net ANBC
(‘adjusted net bank credit’ – which
is total investment made by bank
on non-governmental securities.)
towards agricultural loans.
12. REASONS FOR FOREIGN BANK ENTER IN INDIA
India’s GDP is seen growing at a robust
pace of around 7% over the next few years ,
throwing up opportunities for the banking
sector .
The credit of bank has risen by over 35% in
2011-12 and the growth momentum is
expected to continue over the next four to
five years .
RBI is following a liberal branch licensing
policy for those foreign banks who want to
go to the unbanked pockets.
RBI start sensing enormous business
opportunities in financing trade in small and
medium sectors in small towns in the world’s
second fastest growing economy .
13. ROLE OF FOREIGN BANKS IN INDIA
A. Enhance competition in Banking sector.
B. Technology & skill transfer.
C. Both foreign & local banks have been
investing on financial innovation.
D. Modern banking services are expanded.
E. Enhanced customer satisfaction.
F. Enhanced provision of foreign currency.
G. Foreign Bank Participation in foreign
exchange & money market contribute for
deepening of financial system.
14. IMPORTANCE OF
FOREIGN BANK
o Latest technology.
o Latest ranking.
o Made Indian banking
system more
competitive &
efficient.
15. Future of foreign banks in india
1. Foreign Banks have opportunity in retail sector
as government has allowed overseas
companies in multi – brand retail & removed
the cap on FDI in single brand retail.
2. India is a profitable market for foreign lenders.
3. The country is the 5th most profitable market
for Deutsche Bank globally & its most
profitable emerging market.
4. Foreign banks are also preparing for
internationalization of Indian business.
5. As Indian companies go global they need
banking support & it is not possible for Indian
banks to be present all over the world ,foreign
banks have the network.
16. A. Hong Kong & Shanghai Banking Corporation.
B. Founded in Hong Kong (1865).
C. HSBC in India gives 24 hrs. banking services,
extensive network of ATMs, integrated call centre
& also HSBC e – banking.
D. HSBC Holdings PLC is a
British multinational banking and financial
services holding company, tracing its origin to
a hong in Hong Kong.
E. HSBC has a dual primary listing on the Hong Kong
Stock Exchange and London Stock Exchange and
is a constituent of the Hang Seng Index and
the FTSE 100 Index.
F. The origins of the bank lie mainly in Hong Kong
and to a lesser extent in Shanghai, where
branches were first opened in 1865.
20. CONCLUSION
FG
After the set up of foreign banks in India, the
banking sector in India is also become
competitive & accurative .
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.
RBI provide a launch pad to foreign banks for
greater business expansion after 2009.
