FOREIGN BANKS IN INDIA A PROJECT ON The Strategy Of Pepsi In
India
IN THE SUBJECT
SUBMITTED BYParishi ShahA049MCom Part-I in Banking &
FinanceUNDER THE GUIDANCE OFProf. Prerna Sharma
TOUNIVERSITY OF MUMBAIFORMASTER OF COMMERCE PROGRAMME (SEMESTER
- I)InBANKING & FINANCEYEAR: 2013-14SVKMSNARSEE MONJEE COLLEGE
OF COMMERCE &ECONOMICSVILE PARLE (W), MUMBAI 400056.
IntroductionMeaning- 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 banksEconomic and political relations
between the home country of the foreign banks and
India.International ranking of the bankHome country ranking of the
bankInternational presence of the bankRating given to the bank by
international rating agenciesForeign banks have played an important
role in the Indian economy, especially in the priority sectors.
Globalization has compelled the banking sector to reach out to more
customers in order to expand their business. This meant opening
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 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
requirements. Customer satisfaction was a priority for domestic
banks as well as the foreign banks.Major foreign banksHere is a
list of some foreign banks operating in India1. HSBC - Hong Kong
and Shanghai Banking Corporation2. ABN Amro Bank NV3. Barclays
Bank4. Deutches Bank5. Standard Charted Bank6. National Australia
Bank7. Banca di Roma8. Depfa Bank PLC9. Banco Bibao Vizcaya
Argentina SA10. Citibank NA11. BNP Paribas12. American Express Bank
Ltd.13. Abu Dhabi Commercial Bank Ltd.14. State Bank of Mauritius
Ltd.15. DBS Bank Ltd.16. Bank of Ceylon17. Scotia Bank18. JP Morgan
Chase Bank19. Taib Bank20. China Trust Commercial Bank21. Arab
Bangladesh Bank Ltd.22. Bank of Muscat S.A.O.G23. Bank of America
NA24. Oman International Bank S.A.O.G25. 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 )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: Foreign banks in India:
Income and Expenditure
Another 46 foreign banks and their representative offices 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 (as on November 2012)Issue of ATM
cards:
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