A presentation on MRP Project Indian Banking: Foreign Sector

Presented by: Neetusingh Tarunsinh Mittal Yatin Hiral Hardi

History of Banking
In 1786 The first bank started The General Bank. The oldest bank in existence in India is the State Bank of India, which originated in the Bank of Calcutta in June 1806 Bank of Bengal, Bank of Madras and Bank of Bombay were merged in 1921 as Imperial bank of India now it is State bank of India.

Banking System

Foreign Bank
The bank which origin in foreign and having head office in outside India is called foreign bank Or exchange bank. List of foreign bank in india
ABN-AMRO Bank Abu Dhabi Commercial Bank Bank of Ceylon BNP Paribas Bank Citi Bank China Trust Commercial Bank Deutsche Bank HSBC JPMorgan Chase Bank Standard Chartered Bank Scotia Bank Taib Bank

Why foreign bank enter in India?

Opportunity of profit from banking because GDP of economy is around 7% next 4 year. Greater business expansion. RBI is following a liberal branch licensing policy for those foreign banks who want to go to the small cities. Participation in the growth curve of the Indian economy .

Effect of foreign bank in India

foreign banks may stimulate domestic banks to reduce costs, domestic banks are pressured to improve the quality of their services in order to retain their market shares. The introduction of these services may stimulate domestic banks to also develop such new services, improving the efficiency of financial intermediation of the domestic financial system.

Conti..
foreign banks may increase the quality of human capital in the domestic banking system in a number of ways. Moreover, foreign banks may invest in training of local employees. Increasing the quality of available human capital for the domestic banking system may contribute to more efficient domestic banking practices, which may help to reduce costs.

Research objective
To identifying in industry s dominant economic features To identifying competitive forces by industry members To identifying the forces who are diving the industry changes and its impact To identifying the market position of the industry To identifying the strategy of the rivals To identifying the key factors for the future competitive success To identifying the attractive opportunity presenting by the company

Reserve Bank of India

The central bank of the country is the RBI, established in April 1935 with a share capital of Rs. 5 crores. It was nationalized in the year 1949. Role of RBI.  To regulate the issue of banknotes.  To maintain reserves with a view to securing monetary stability.  To operate the credit and currency system of the country to its advantage.

Function of RBI
Bank of Issue Banker to Government Bankers' Bank Controller of Credit Custodian of Foreign Reserves Supervisory functions Promotional functions

Major player
Banks
Standard charted bank

Country
United kingdom

Branches in India
96

H.S.B.C Ltd

Hong Kong

50

Citi bank

U.S.A

42

The Royal bank of Scotland

Netherland

31

Deutsche bank

Germany

16

D.B.S Bank Ltd

Singapore

12

Standard charted bank

It was formed in 1969 through the merger of two separate banks, the Standard Bank of British, South Africa and the Chartered Bank of India, China, Australia . The charted bank was found in 1853 by queen Victoria in British. The bank opened in India 1858 in Bombay And Calcutta during British rule. The Standard Bank was founded in the Cape Province of South Africa in 1862

HSBC Ltd
HSBC was founded in the former British colony of Hong Kong and Shanghai in 1865. In 1980, HSBC acquired a 51% shareholding in Marine Midland Bank, which it extended to full ownership in 1987. In 1999 it acquired US Republic National Bank. In May 2008 HSBC acquired IL&FS Investment, an Indian retail broking firm.

Citi Bank
It founded in 1812 as Citi bank of Newyork. In 1919 the citi bank became the first U.S. bank to have $1 billion in assets. Bank expanded rapidly 100 branches in 23 countries outside the United States by 1930.

The Royal Bank of Scotland

It founded in 1727 The bank opened its first branch office outside Edinburgh in 1783 when the first Glasgow branch opened.

Deutsche Bank
Deutsche Bank was founded in Berlin in 1870. It employs more than 100,000 people in over 70 countries.

Porter s five force model

PEST Analysis
1. Political Factor Regulatory control and protection Government encouragement of savings and investment by tax benefit. 2. Economic Factor