Foreign Banks In India
Foreign Banks are not new phenomena in Indian bank in system. Standard Charted Bank started its operation in 1858 and Citi Bank opened its branch in India in 1902.
Similarly Hong Kong and Shanghai Banking Corporation is functioning in India since 1953.
However, globalization and economic policies implemented in late 1980s encouraged many international banks to open their shops here. At almost all the international banks are operating in India.
Foreign banks in India have brought the latest technology and new banking practices. This helped the domestic banks to improve their performance and provide better customer service. Due to their fast and efficient working style and better customer service foreign banks in India captured a large customer base.
Present there are 29 foreign banks are operating in India and some of the important foreign banks in India are:
- ABN-AMRO Bank
- Abu Dhabi Commercial Bank
- Bank of Ceylon
- BNP Paribas Bank
- Citi Bank
- China Trust Commercial Bank
- Deutsche Bank
- JPMorgan Chase Bank
- Standard Chartered Bank
- Scotia Bank
- Taib Bank
Reserve Bank of India’s recent initiatives and guidelines for foreign banks in India encouraged many international banks to open their operations in India. By the year end 2009 few more international banks are planning to open their operations in India. Some of the prominent names that are going open operations in India are:
- Royal Bank of Scotland
- Switzerland's UBS
- US-based GE Capital
- Credit Suisse Group
- Industrial and Commercial Bank of China
- Merrill Lynch (in association with DSP)
- Goldman Sachs (with Kotak Mahindra)
Foreign banks in India have significantly improved the Indian foreign exchange market. During 2005-06 foreign banks registered a turnover of 41 % where as in 2007-08 their share raised to 52 %.
Foreign banks in India have brought competition among public sector banks in terms or efficiency and customer service. They completed change the way banks worked in India. Today nearly all domestic banks streamlined their operation by introducing technology and best banking practices.
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