Introduction Major foreign banks in India Market Capitalization of foreign banks Reasons for foreign bank entering in India Future of Foreign Banks in India Conclusion
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 banks 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.
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 ATM’S ( 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 (as on November 2012)
Share of bank groups in ATM (in thousands) 1,41436,079 Public Sector Bank 58,193 Private Sector Bank Foreign Bank
Share of bank groups in Total Credit/Debit Card (in percentage)6050403020100 State Bank Of Nationalised Old Private Foreign Bank New Private India Bank Sector Bank Sector Bank credit card debit card
Standard Chartered bank is the oldestforeign bank that came to India i.e. 150years ago, now operates the maximumnumber of branches i.e. 95 Follows HSBC which entered in India in the year 1867, now Operates the 51 branches.
CITIBANK has the 3rdlargestbranch network in India i.e. 42.Citibank was badly affected bythe financial crisis of 2008 Follows ABN AMRO with 31 branches in India. The bank also offers specialized services to international diamond and jewellery merchants,
Royal Bank of Scotland in Indiagoes back to 1921 There are totalof 31 branches throughout thecountry with 1.4 million customers. In November 2006, Barclays started serving commercial customers. Barclays now operate 10 branches & 100 ATM network.
Name and address of the Country Centre Date ofS. N representative office of incorporation opening 1 Commonwealth Bank Australia Bangalore 7.11.2005 2 UBSAG Switzerland Mumbai 24.11.1994 3 Raiffeisen Zentral Bank Austria Mumbai 1.11.1992 Osterreich AG 4 Fortis Bank Belgium Mumbai 6.10.1987 5 The Bank of New York USA Mumbai 27.10.1983 6 Emirates Bank International Dubai Mumbai 16.06.2000 7 Credit Industriel et France New Delhi 1.04.1997 Commercial
‘Foreign Banks’ Branches in India Income and Expenditure ‘Foreign Banks’ Branches in India Amount (in billion) Growth (%) Items 2009-10 2010-11 2011-12 2010-11 2011-12Income 452.0 363.2 394.3 -19.6 8.5Of Which: 303.1 263.2 285.9 -13.2 8.6Interest incomeExpenditure 326.2 200.1 281.3 -38.7 40.6Of which:Interest 128.1 85.9 107.3 -33.0 24.9Expenditure
Profitability Ratio ( in per cent ) Profitability Foreign Banks Operating in India Ratio 2009-10 2010-11 2011-12 Income to 8.0 8.4 10.1 Total Assets Net Profit to 27.8 28.6 44.9 Total Income Net Profit to 2.3 2.8 3.8 Total Assets
International Trade in Banking Services (in billions)120 105 107100 98 80 60 Foreign Bank Operating in India 40 30 44 33 Indian Banks Operating 20 Abroad 0 2009-10 2010-11 2011-12
Indias GDP is seen growing at a robust pace of around 7% over the next few years, throwing up opportunities for the banking sector to profit from. The credit of banks 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 started sensing enormous business opportunities in financing trade and small and medium sectors in small towns in the worlds second fastest growing economy.
The latest opportunity foreign banks see is in the retail sector. The government recently allowed overseas companies in multi-brand retail and removed the cap on foreign direct investment (FDI) in single-brand retail. India is a profitable market as well for foreign lenders. The country is the fifth most profitable market for Deutsche Bank globally and its most profitable emerging market.
Foreign banks are also preparing for the internationalization of Indian business. As Indian companies go global they need banking support and it is not possible for Indian banks to be present all over the world. Foreign banks have the network. "You have to come in with a big-bang investment." - Ravneet Gill, CEO, Deutsche Bank India
Foreign Banks in India always brought an explanation about the prompt services to customers. After the set up foreign banks in India, the banking sector in India also become competitive and accurative. India is expected to find a place in the strategy of these banks given the countrys growth prospects. Indias GDP is seen growing at a robust pace of around 7 per cent 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.