Foreign Banks in India

There are two ways of presence of foreign banks in India. First is the branch form of presence which means that the foreign bank has its physical branch in India. Second is the presence through Representative Office in India, which is not actually a branch.

Foreign Banks with Branches in India

As of November 2018, India has 45 foreign banks with total 286 branches operating in India. These are listed in below table:

No.Bank NameCountryBranches in India
1)Australia and New Zealand Banking Group Ltd.Australia3
2)National Australia BankAustralia1
3)Westpac Banking CorporationAustralia1
4)Bank of Bahrain & Kuwait BSCBahrain4
5)AB Bank Ltd.Bangladesh1
6)Sonali Bank Ltd.Bangladesh2
7)Bank of Nova ScotiaCanada3
8)Industrial & Commercial Bank of China Ltd.China1
9)BNP ParibasFrance8
10)Credit Agricole Corporate & Investment BankFrance5
11)Societe GeneraleFrance4
12)Deutsche BankGermany17
13)HSBC LtdHong Kong26
14)PT Bank Maybank Indonesia TBKIndonesia1
15)Mizuho Bank Ltd.Japan5
16)Sumitomo Mitsui Banking CorporationJapan2
17)The Bank of Tokyo- Mitsubishi UFJ, Ltd.Japan5
18)SBM Bank(Mauritius) LtdMauritius4
19)Cooperatieve Rabobank U.A.Netherlands1
20)Doha BankQatar3
21)Qatar National BankQatar1
22)JSC VTB BankRussia1
24)DBS Bank Ltd.Singapore12
25)United Overseas Bank LtdSingapore1
26)FirstRand Bank LtdSouth Africa1
27)Shinhan BankSouth Korea6
28)Woori BankSouth Korea3
29)KEB Hana BankSouth Korea1
30)Industrial Bank of KoreaSouth Korea1
31)Bank of CeylonSri Lanka1
32)Credit Suisse A.GSwitzerland1
33)CTBC Bank Co., Ltd.Taiwan2
34)Krung Thai Bank Public Co. Ltd.Thailand1
35)Abu Dhabi Commercial Bank Ltd.UAE2
36)Mashreq Bank PSCUAE1
37)First Abu Dhabi Bank PJSCUAE1
38)Emirates Bank NBDUAE1
39)Barclays Bank Plc.United Kingdom6
40)Standard Chartered BankUnited Kingdom100
41)The Royal Bank of Scotland plcUnited Kingdom1
42)American Express Banking CorporationUSA1
43)Bank of AmericaUSA4
44)Citibank N.A.USA35
45)J.P. Morgan Chase Bank N.A.USA4
Foreign Banks with Representative Office

Currently, 40 foreign banks are operating as representative offices in India. Apart from that, few foreign banks have entered into India via the NBFC route also.

What is the share of foreign banks in the banking business in India?

Foreign Banks account for less than 1% of the total branch network in the country. However, they account for approximately 7% of the total banking sector assets and around 11% of the profits. Most of the foreign banks in India are niche players and their business is usually focused on trade finance, external commercial borrowings, wholesale lending, investment banking and treasury services. Some other banks are confined to private banking and wealth management.

What is the RBI regulation policy towards Foreign Banks in India?

RBI policy towards presence of foreign banks in India is based upon two cardinal principles viz. reciprocity and single mode of presence. By reciprocity, it means that overseas banks are given near national treatment in India only if their home country allowed Indian banks to open branches there without much restrictions. By single mode of presence, it means that RBI allows either of the branch mode or a wholly owned subsidiary (WOS) mode in India.

Some other policy guidelines of RBI towards foreign banks are as follows:

  1. Banks have to adhere to mandated Capital Adequacy requirements as per Basel Standard.
  2. They should have to meet minimum capital requirement of Rs. 5 billion.
  3. They should need to maintain minimum CRAR at 10%
  4. Priority sector targets for foreign banks in India is 40%.

Further, the foreign banks have to follow other norms as set by Reserve Bank of India.

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