FOREIGN BANKS

BEN MATHEWS
T4 MBA
 Foreign Bank
• Foreign banks are those banks with the obligation of
following the regulations of both its home and its
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.

• In simple words “any bank which has been

established in foreign country,however,they own
branches in India for the purpose of conducting
banking business in India” is known as foreign banks.
Major foreign banks
• Standard chartered bank:Established in
1853.It is the first foreign bank that came
to India i.e. 166 yrs ago.Now it operates
the maximum no of branches i.e 100.
Head quarters:London,England.

• HSBC(Hongkong and Shanghai

Banking Corporation):HSBC was
established in 1866 in london.It is the
second largest foreign bank which
entered india in the year 1867.Now it
operates around 51 branches in India
• Citi bank: Citi bank has the third
largest branch network in india i.e
42.It was badly affected by financial
crisis of 2008.Head quarters is located
in New york.

• Royal bank of Scotland: Commonly

abbreviated as RBS. The Royal Bank of
Scotland was established in
1724.There are total 31 branches
throughout the country with 1.4
million customers
ROLE OF FOREIGN BANKS

• Enhance competition in banking sector.

• Technology and skill transfer.
• Modern banking services are expanded.
• Enhanced customer satisfaction.
• Enhance provision of foreign currency.
Domestic v/s Foreign bank

• Banks with presence in multiple countries are called

foreign banks whereas banks which operates within the
boundaries of a country area is called domestic banks.
• Domestic banks are required to adhere to the local laws of
the country it is registered whereas foreign banks has to
comply with the laws of the country it head quatered and
also the laws of the country it is operating.
• Domestic banks are not impacted by fluctuations in foreign
currency whereas foreign banks is impacted by such
fluctuations.
CURRENT SCENARIO
 March-end 2017, there were a total of 49 foreign banks
At
operating 288 branches in country, led by Standard
Chartered Bank with 100 branches, Citibank with 40
branches, Hong Kong and Shanghai Banking Corpn. Ltd
26 branches and Deutsche Bank AG 17 branches, RBI
data showed.
 There are 40 foreign banks with representative
offices in India

 There are total 1149 ATMs(295 on-site ATMs & 854

off-site ATMs)
THANK YOU