Role of Foreign Commercial Banks in Indian Economy

Full text

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Role of Foreign Commercial

Banks in Indian Economy

Presentation By-

Santosh Parashar

Program Co-ordinator (Finance) Institute of Advanced Management &

Research, Ghaziabad E-mail: sk_parashar@rediffmail.com

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Topics Covered

Topics Covered

IntroductionIntroduction

Pre-requisites for banking business in IndiaPre-requisites for banking business in IndiaLicensing to Foreign Banks in India Licensing to Foreign Banks in India

Policies adopted by RBI for Foreign banks ; Road MapPolicies adopted by RBI for Foreign banks ; Road Map

Foreign Banks’ Operation in India; Financial Performance of Foreign BanksForeign Banks’ Operation in India; Financial Performance of Foreign BanksConclusion Conclusion

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For the past three decades India’s banking

For the past three decades India’s banking

system has several outstanding achievements

system has several outstanding achievements

to its credit.

to its credit.

The most striking is its extensive reach. It is

The most striking is its extensive reach. It is

no longer confined to only metropolitans or

no longer confined to only metropolitans or

cosmopolitans in India. In fact, Indian banking

cosmopolitans in India. In fact, Indian banking

system has reached even to the remote

system has reached even to the remote

corners of the country.

corners of the country.

Thus, Growing Indian economy is the result of

Thus, Growing Indian economy is the result of

effective Indian banking system amongst

effective Indian banking system amongst

many other responsible internal and external

many other responsible internal and external

factors, in which the role played by foreign

factors, in which the role played by foreign

commercial banks in the country is also a

commercial banks in the country is also a

crucial one.

crucial one.

Foreign banks like

Foreign banks like

Citibank, HSBC, Standard

Citibank, HSBC, Standard

Chartered Bank

Chartered Bank

, etc are the branches of those

, etc are the branches of those

banks which are incorporated in foreign

banks which are incorporated in foreign

countries. Most of them perform essentially

countries. Most of them perform essentially

the same range of services as local banks,

the same range of services as local banks,

except that their focus in terms of product and

except that their focus in terms of product and

customers may be different due to their limited

customers may be different due to their limited

branch network.

branch network.

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They bring in new technology and facilitate in

They bring in new technology and facilitate in

the introduction as well as assimilation of

the introduction as well as assimilation of

international products into the domestic

international products into the domestic

markets.

markets.

They help the local banking industry keep

They help the local banking industry keep

pace with developments in the financial

pace with developments in the financial

centres abroad. They also help provide

centres abroad. They also help provide

Indian corporations access to foreign capital

Indian corporations access to foreign capital

markets.

markets.

In keeping with the general trend towards

In keeping with the general trend towards

liberalization,

the

Government

has

liberalization,

the

Government

has

introduced several measures for widening

introduced several measures for widening

the scope for foreign banks to enter and

the scope for foreign banks to enter and

operate in India.

operate in India.

On the one hand if they always brought an

On the one hand if they always brought an

explanation about the prompt services to

explanation about the prompt services to

customers then on the other hand they offer

customers then on the other hand they offer

biggest competition to the domestic banks in

biggest competition to the domestic banks in

India.

India.

This paper focuses on RBI regulation

This paper focuses on RBI regulation

(licensing requirement) for foreign banks,

(licensing requirement) for foreign banks,

economic contribution and prospects of

economic contribution and prospects of

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A A foreign bankforeign bank is a bank organized under foreign law and located outside the is a bank organized under foreign law and located outside the

country of its origin. A foreign bank includes

country of its origin. A foreign bank includes offices, branches, and agencies offices, branches, and agencies of commercial banks or trust companies, private banks, national banks, thrift

of commercial banks or trust companies, private banks, national banks, thrift

institutions, credit unions, and other organizations chartered under banking

institutions, credit unions, and other organizations chartered under banking

laws and supervised by banking supervisors of country of operation.

laws and supervised by banking supervisors of country of operation.

A A "foreign bank""foreign bank" does not include does not include any foreign central bank or monetary any foreign central bank or monetary

authority that functions as a central bank, or any international financial

authority that functions as a central bank, or any international financial

institution or regional development bank formed by treaty or international

institution or regional development bank formed by treaty or international

agreement.

agreement.

On the basis of On the basis of purpose to operate,purpose to operate, there are there are two main typestwo main types of foreign banks of foreign banks

-those that come into developing countries primarily to serve their home

-those that come into developing countries primarily to serve their home

clients, the so–called

clients, the so–called traditional traditional or or classical classical banksbanks, and the , and the opportunist,opportunist, who who come looking for profit (short or long-run) opportunities in developing

come looking for profit (short or long-run) opportunities in developing

countries.

countries.

On the basis of On the basis of channel to operate /mode of presencechannel to operate /mode of presence, there are , there are three typesthree types of of

foreign Banks- first –

foreign Banks- first –Branches, second -A wholly owned subsidiary (WOS) Branches, second -A wholly owned subsidiary (WOS) and A subsidiary with maximum foreign investment of 74% in a private bank.

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Pre-requisites of banking business in India

Pre-requisites of banking business in India

In terms of Sec 22 of the B.R. Act-1949, no company shall carry on In terms of Sec 22 of the B.R. Act-1949, no company shall carry on

banking business in India, unless it holds a license issued in that behalf by banking business in India, unless it holds a license issued in that behalf by Reserve Bank and any such license may be issued subject to such

Reserve Bank and any such license may be issued subject to such

conditions as the Reserve Bank may think fit to impose. Before granting conditions as the Reserve Bank may think fit to impose. Before granting any license, RBI may require to be satisfied that the following conditions any license, RBI may require to be satisfied that the following conditions are fulfilled:

are fulfilled:

that the company is or will be in a position to pay its present or future depositors that the company is or will be in a position to pay its present or future depositors in full as their claims accrue;

in full as their claims accrue;

that the affairs of the company are not being , or are not likely to be, conducted in that the affairs of the company are not being , or are not likely to be, conducted in a manner detrimental to the interests of its present or future depositors;

a manner detrimental to the interests of its present or future depositors;

that the general character of the proposed management of the proposed bank will that the general character of the proposed management of the proposed bank will not be prejudicial to the public interest or the interest of its depositors;

not be prejudicial to the public interest or the interest of its depositors;

that the company has adequate capital structure and earning prospects;that the company has adequate capital structure and earning prospects;

that having regard to the banking facilities available in the proposed principal that having regard to the banking facilities available in the proposed principal area of operations of the company, the potential scope for expansion of banks

area of operations of the company, the potential scope for expansion of banks

already in existence in the area and other relevant factors the grant of the license

already in existence in the area and other relevant factors the grant of the license

would not be prejudicial to the operation and consolidation of the banking system

would not be prejudicial to the operation and consolidation of the banking system

consistent with monetary stability and economic growth.

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Licensing to Foreign Banks in India

Licensing to Foreign Banks in India

Procedurally, foreign banks are required to apply to RBI for opening their Procedurally, foreign banks are required to apply to RBI for opening their

branches in India. Foreign banks’ application for opening their maiden

branches in India. Foreign banks’ application for opening their maiden

branch is considered under the provisions of Sec 22 of the BR Act, 1949.

branch is considered under the provisions of Sec 22 of the BR Act, 1949.

Before granting any license under this section, RBI may require to be Before granting any license under this section, RBI may require to be

satisfied that the Government or the law of the country in which it is

satisfied that the Government or the law of the country in which it is

incorporated does not discriminate in any way against banks from India.

incorporated does not discriminate in any way against banks from India.

Unlike the restrictive practices of certain foreign countries, India is liberal in Unlike the restrictive practices of certain foreign countries, India is liberal in

respect of the licensing and operation of the foreign bank branches as

respect of the licensing and operation of the foreign bank branches as

illustrated by the following:

illustrated by the following:

India issues a single class of banking license to banks and hence India issues a single class of banking license to banks and hence

does not place any undue restrictions on their operations merely on

does not place any undue restrictions on their operations merely on

the ground that in some countries there are requirements of multiple

the ground that in some countries there are requirements of multiple

licenses for dealing in local currency and foreign currencies with

licenses for dealing in local currency and foreign currencies with

different categories of clientele.

different categories of clientele.

Banks in India, both Indian and foreign, enjoy full and equal access Banks in India, both Indian and foreign, enjoy full and equal access

to the payments and settlement systems and are full members of the

to the payments and settlement systems and are full members of the

clearing houses and payments system.

clearing houses and payments system.

All banks can carry on both retail and wholesale banking.All banks can carry on both retail and wholesale banking.

Deposit insurance cover is uniformly available to all foreign banks at Deposit insurance cover is uniformly available to all foreign banks at

a non-discriminatory rate of premium.

a non-discriminatory rate of premium.

The norms for capital adequacy, income recognition and asset The norms for capital adequacy, income recognition and asset

classification are by and large the same. Other prudential norms

classification are by and large the same. Other prudential norms

such as exposure limits are the same as those applicable to Indian

such as exposure limits are the same as those applicable to Indian

banks.

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Policies adopted by RBI for Foreign banks

Policies adopted by RBI for Foreign banks

The policy for approving foreign banks applications to open

The policy for approving foreign banks applications to open

maiden branch and further expand their branch presence

maiden branch and further expand their branch presence

has been incorporated by RBI in the

has been incorporated by RBI in the

‘Roadmap for

‘Roadmap for

presence of Foreign banks in India’ indicated in the Press

presence of Foreign banks in India’ indicated in the Press

Release dated February 28, 2005 as well as in the

Release dated February 28, 2005 as well as in the

liberalized branch authorization policy issued on

liberalized branch authorization policy issued on

September 8, 2005.

September 8, 2005.

The branch authorization policy for Indian banks has been

The branch authorization policy for Indian banks has been

made applicable to foreign banks subject to the following

made applicable to foreign banks subject to the following

steps specified in the roadmap:

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Road MAP:

Road MAP:

Phase I: March 2005 to March 2009

Phase I: March 2005 to March 2009

Foreign banks are required to bring an assigned capital of US $25 Foreign banks are required to bring an assigned capital of US $25

million up front at the time of opening the first branch in India.

million up front at the time of opening the first branch in India.

Existing foreign banks having only one branch have to comply with the Existing foreign banks having only one branch have to comply with the

above requirement before their request for opening of second branch

above requirement before their request for opening of second branch

are considered. Foreign banks may submit their branch expansion plan

are considered. Foreign banks may submit their branch expansion plan

on an annual basis.

on an annual basis.

Foreign bank’s and its group’s track record of compliance and Foreign bank’s and its group’s track record of compliance and

functioning in the global markets is considered. Reports from home

functioning in the global markets is considered. Reports from home

country supervisors are sought, wherever necessary.

country supervisors are sought, wherever necessary.

Weightage is given to even distribution of home countries of foreign Weightage is given to even distribution of home countries of foreign

banks having presence in India. The treatment extended to Indian banks

banks having presence in India. The treatment extended to Indian banks

in the home country of the applicant foreign bank is considered .

in the home country of the applicant foreign bank is considered .

Due consideration is given to the bilateral and diplomatic relations Due consideration is given to the bilateral and diplomatic relations

between India and the home country.

between India and the home country.

The branch expansion of foreign banks is considered keeping in view The branch expansion of foreign banks is considered keeping in view

India’s commitments at World Trade Organization (WTO). As a part of

India’s commitments at World Trade Organization (WTO). As a part of

market access, India is committed to permit opening of 12 branches of

market access, India is committed to permit opening of 12 branches of

foreign banks every year. As against these commitments, Reserve Bank

foreign banks every year. As against these commitments, Reserve Bank

of India has permitted up to 17- 18 branches in the past .

of India has permitted up to 17- 18 branches in the past .

Licenses issued for off-site ATMs installed by foreign banks are not Licenses issued for off-site ATMs installed by foreign banks are not

included in the ceiling of 12.

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The Reserve Bank follows a liberal policy where the branches are

The Reserve Bank follows a liberal policy where the branches are

sought to be opened in unbanked/under-banked areas.

sought to be opened in unbanked/under-banked areas.

Permission for conversion of existing branches of a foreign bank

Permission for conversion of existing branches of a foreign bank

into a WOS will be guided by the manner in which the affairs of the

into a WOS will be guided by the manner in which the affairs of the

branches of the bank are conducted, compliance with the statutory

branches of the bank are conducted, compliance with the statutory

requirements and the overall supervisory comfort of RBI. Also, for

requirements and the overall supervisory comfort of RBI. Also, for

reckoning the minimum net worth the local available capital

reckoning the minimum net worth the local available capital

including the remittable surplus retained in India will qualify.

including the remittable surplus retained in India will qualify.

In order to allow Indian banks sufficient time to prepare themselves

In order to allow Indian banks sufficient time to prepare themselves

for global competition, initially entry of foreign banks will be

for global competition, initially entry of foreign banks will be

permitted only in the private sector banks that are identified by the

permitted only in the private sector banks that are identified by the

RBI for restructuring. In such banks, foreign banks would be

RBI for restructuring. In such banks, foreign banks would be

allowed to acquire a controlling stake in a phased manner.

allowed to acquire a controlling stake in a phased manner.

RBI will consider the application for acquisition of 5% or more

RBI will consider the application for acquisition of 5% or more

stakes in a foreign bank depending upon the reputation of the

stakes in a foreign bank depending upon the reputation of the

foreign bank, its desired level of presence in the country and the

foreign bank, its desired level of presence in the country and the

interest of the shareholders of the investee bank.

interest of the shareholders of the investee bank.

RBI may also specify, if necessary, that the investor bank shall

RBI may also specify, if necessary, that the investor bank shall

make a minimum acquisition of 15% or more and the period of time

make a minimum acquisition of 15% or more and the period of time

for such acquisition. The overall limit of 74% will continue to be

for such acquisition. The overall limit of 74% will continue to be

applicable.

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Phase II: April 2009 onwards

Phase II: April 2009 onwards

In the second phase, the removal of limitations on the operations of

In the second phase, the removal of limitations on the operations of

the WOS and treating them on par with domestic banks to the extent

the WOS and treating them on par with domestic banks to the extent

appropriate will be designed and implemented after reviewing the

appropriate will be designed and implemented after reviewing the

success of Phase I.

success of Phase I.

The WOS of foreign banks on completion of a minimum prescribed

The WOS of foreign banks on completion of a minimum prescribed

period of operation will be allowed to list and dilute their stake (by way

period of operation will be allowed to list and dilute their stake (by way

of IPO or offer for sale) so that at least 26% of the paid up capital of

of IPO or offer for sale) so that at least 26% of the paid up capital of

the subsidiary is held by resident Indians.

the subsidiary is held by resident Indians.

After a review is made with regard to the extent of penetration of

After a review is made with regard to the extent of penetration of

foreign banks in India and their functioning, foreign banks may be

foreign banks in India and their functioning, foreign banks may be

permitted, to enter into merger and acquisition transactions with any

permitted, to enter into merger and acquisition transactions with any

private sector bank in India subject to the overall investment limit of

private sector bank in India subject to the overall investment limit of

74%.

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Foreign Banks’ Operation in India

Foreign Banks’ Operation in India

As at June 2009, 32 foreign banks were operating in India with 295

As at June 2009, 32 foreign banks were operating in India with 295

branches

branches

as compared with 30 foreign banks with 279 branches as at

as compared with 30 foreign banks with 279 branches as at

end –June 2008.

end –June 2008.

These banks originated

These banks originated

from 23 different countries.

from 23 different countries.

In addition,

In addition,

43

43

foreign banks operated in India through representative offices.

foreign banks operated in India through representative offices.

During the period from July 2008 to June 2009

During the period from July 2008 to June 2009

, permission has been

, permission has been

granted

granted

to the

to the

four existing foreign banks to open 12 branches

four existing foreign banks to open 12 branches

and to

and to

three new banks

three new banks

,

,

(viz., CIMB Bank Berhad, Malaysia, Commonwealth

(viz., CIMB Bank Berhad, Malaysia, Commonwealth

Bank of Australia and FirstRand Bank Ltd. of south Africa)

Bank of Australia and FirstRand Bank Ltd. of south Africa)

to open one

to open one

maiden branch each in India.

maiden branch each in India.

During the same period, permission was granted to three foreign

During the same period, permission was granted to three foreign

banks

banks

(

(

viz.

viz.

, Kfw-IPEX Bank GmbH, Toronto Dominion Bank and

, Kfw-IPEX Bank GmbH, Toronto Dominion Bank and

Duncan Lawrie Ltd.)

Duncan Lawrie Ltd.)

to open a representative office each in India.

to open a representative office each in India.

Three foreign banks

Three foreign banks

viz., DBS Bank ltd., Deutsche Bank AG and

viz., DBS Bank ltd., Deutsche Bank AG and

FirstRand Bank Ltd.

FirstRand Bank Ltd.

together set up 12 branches during July 2008 to

together set up 12 branches during July 2008 to

June 2009. Besides, two foreign

June 2009. Besides, two foreign

viz.

viz.

, DnB NOR Bank and KfW IPEX

, DnB NOR Bank and KfW IPEX

Bank GmbH

Bank GmbH

opened a representative office each in India during the

opened a representative office each in India during the

same period.

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Offices of Commercial Banks in India-2005-09

Bank Group As on March 31

2005 2006 2007 2008 2009

(1) (2) (3) (4) (5)

State Bank of India and its Associates 14006 14294 14651 15814 16731

Nationalized Banks$ 35096 35848 37413 39204 40766

Foreign Banks 242 259 272 279 295

Regional Rural Banks 14763 14776 14812 15029 15384

Other Scheduled commercial Banks 6462 6828 7415 8294 9186

Non-Scheduled Commercial Banks 37 41 46 46 46

Total 70606 72046 74609 78666 82408

Notes : No. of offices includes administrative offices.

$ Includes IDBI Bank Ltd.

Data for 2005 to 2008 have been revised and data for 2009 are provisional.

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Offices of C ommercial B anks in India 2009

Nationalize d Bank s , 40766

SBI & its As s ociate s , 16731

Fore ign Bank s , 295

Re gional Rural Bank s , 15384 Othe r Sche dule d

Com m e rcial Bank s , 9186

Non-Sche dule d Com m e rcial

Bank s , 46

SBI & its As s ociate s

Nationalize d Bank s

For e ign Bank s

Re gional Rural Bank s

Othe r Sche dule d Com m e rcial Bank s

Non-Sche dule d Com m e r cial Bank s

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Fig- OCCUPATION –WISE DISTRIBUTION OF CREDIT BY FOREIGN BANKS-2008 (AS ON 31ST MARCH)

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Financial Performance of Foreign Banks in India (As on 31

st

March)

Deposit

Investment

Advances

2007

2008

2009

2007

2008

2009

2007

2008

2009

150,750 191,443 214,077

71,471

99,092

130,353

126,339 161,959 165,415

Statement II: Foreign Banks in India: Total Assets/Gross NPAs/Net NPAs (Rs. Crore)

Total Assets

Gross NPA

Net NPA

2007

2008

2009

2007

2008

2009

2007

2008

2009

274,392

365,255

447,070

2,263

2,872

6,807

927

1,254

2,973

(17)

Financial Performance of Foreign Banks in India (As on 31

st

March)

Statement III: Foreign Banks in India: Income (Rs. Crore)

Interest Income

Other Income

Total Income

2007

2008

2009

2007

2008

2009

2007

2008

2009

17,924

24,422

30,322

7,044

10,616

14,890

24,968

35,037

45,211

Statement IV: Foreign Banks in India: Expenditure (Rs. Crore)

Interest Expended

Operating Expenses

Total Expenditure#

2007

2008

2009

2007

2008

2009

2007

2008

2009

7,603

10,609

12,817

7,745

10,374

12,298

15,348

20,983

25,114

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Statement V: Foreign Banks in India: Profit (Rs. Crore)

Operating Profits

Provisions

&Contingencies

Net Profit

2007

2008

2009

2007

2008

2009

2007

2008

2009

9,619 14,054 20,097

5,034 7,441 12,588

4,585

6,613

7,509

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Net Profit Trend of Foreign Banks (As on 31st March) 4585 6613 7509 0 1000 2000 3000 4000 5000 6000 7000 8000 1 2 3 years N e t p ro fi t years net profit

Net Profit Trend of Foreign Banks (as on 31

st

March 2007 to 2009 )

44.23% Growth

13.54% Growth

By having look on performance of foreign banks in India mentioned in

By having look on performance of foreign banks in India mentioned in

statement I to V it is very clear that their

statement I to V it is very clear that their

Deposits/Investments/Advances

Deposits/Investments/Advances

have increased altogether from year 2007 to 2009

have increased altogether from year 2007 to 2009

But with the increase in net NPA’s

But with the increase in net NPA’s

(Proportionately more in year 2009)

(Proportionately more in year 2009)

over the years their net profits has declined in year 2009

over the years their net profits has declined in year 2009

, as the

, as the

percentage increase in net profits in year 2008 was 44.23% whereas in

percentage increase in net profits in year 2008 was 44.23% whereas in

year 2009 it was only 13.54%.

year 2009 it was only 13.54%.

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Rising non-performing assets, or NPAs, and constraints on capital

Rising non-performing assets, or NPAs, and constraints on capital

flows following the global financial turmoil have taken their toll on

flows following the global financial turmoil have taken their toll on

foreign banks’ operations in India.

foreign banks’ operations in India.

Banks need capital to expand loan assets, but in many cases,

Banks need capital to expand loan assets, but in many cases,

parents of foreign banks operating in India are not in a position to

parents of foreign banks operating in India are not in a position to

infuse capital.

infuse capital.

Rising NPAs are also discouraging foreign banks from the

Rising NPAs are also discouraging foreign banks from the

aggressive asset creation they pursued in the past few years when

aggressive asset creation they pursued in the past few years when

the Indian economy was growing at an average pace of 8.5% and

the Indian economy was growing at an average pace of 8.5% and

consumers were buying homes and cars and spending more on

consumers were buying homes and cars and spending more on

their credit cards.

their credit cards.

Banks have to set aside money to cover NPAs, for which they

Banks have to set aside money to cover NPAs, for which they

require more capital.

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However, by the year 2010, the list of foreign banks in India may become

However, by the year 2010, the list of foreign banks in India may become

more quantitative as numbers of foreign banks are still waiting with

more quantitative as numbers of foreign banks are still waiting with

baggage to start business in India despite of liquidation decision

baggage to start business in India despite of liquidation decision

discouraging foreign players- like,

discouraging foreign players- like,

RBS which has 31 branches in India

RBS which has 31 branches in India

and employs about 10,000 people has already approached the Indian

and employs about 10,000 people has already approached the Indian

central bank for approval of liquidation deal and

central bank for approval of liquidation deal and

The Reserve Bank of

The Reserve Bank of

India has confirmed that it will require foreign banks to undergo a full audit

India has confirmed that it will require foreign banks to undergo a full audit

of their Indian operations prior to be allowed to establish new branches.

of their Indian operations prior to be allowed to establish new branches.

The requirement to audit foreign banks before further expansion is to

The requirement to audit foreign banks before further expansion is to

preserve risk management capabilities over concerns that any failure

preserve risk management capabilities over concerns that any failure

could create risks for Indian financial markets.

could create risks for Indian financial markets.

(22)

Conclusion

Conclusion

The move to audit foreign banks expansion in India is seen as a

The move to audit foreign banks expansion in India is seen as a

sensible precaution in light of the current global crisis.

sensible precaution in light of the current global crisis.

Foreign banks committed to making a play in India will need to

Foreign banks committed to making a play in India will need to

adopt alternative approaches to win the “race for the customer” and

adopt alternative approaches to win the “race for the customer” and

build a value-creating customer franchise in advance of regulations

build a value-creating customer franchise in advance of regulations

potentially in 2010.

potentially in 2010.

At the same time, they should stay in the game for potential

At the same time, they should stay in the game for potential

acquisition opportunities as and when they appear in the near term.

acquisition opportunities as and when they appear in the near term.

Maintaining a fundamentally long-term value-creation mindset will

Maintaining a fundamentally long-term value-creation mindset will

be their greatest challenge.

be their greatest challenge.

The extent to which Indian policy makers and bank managements

The extent to which Indian policy makers and bank managements

develop and execute such a clear and complementary agenda to

develop and execute such a clear and complementary agenda to

tackle emerging discontinuities will lay the foundations for a

tackle emerging discontinuities will lay the foundations for a

high-performing sector in 2010.

(23)

References:

References:

1.

1. Report on Trend and Progress of Banking in India (2008-09),RBI Report on Trend and Progress of Banking in India (2008-09),RBI

Bulletin; Nov.09.

Bulletin; Nov.09.

2.

2. Principles and practices of Banking; IIBF, McMillan reprinted, 2009Principles and practices of Banking; IIBF, McMillan reprinted, 2009

3. 3. http://www.rbi.org.in/scripts/statistics.aspxhttp://www.rbi.org.in/scripts/statistics.aspx 4. 4. www.legalhelpindia.com/bareACTS/BANKING%20REGULATIONwww.legalhelpindia.com/bareACTS/BANKING%20REGULATION %20ACT%201949.doc %20ACT%201949.doc 5. 5. http://www.idlo.int/microfinance/DOCUMENTS/REGULATIONS/INDIA2.http://www.idlo.int/microfinance/DOCUMENTS/REGULATIONS/INDIA2. pdf pdf 6. 6. http://www.mckinsey.com/locations/india/mckinseyonindia/pdf/india_banhttp://www.mckinsey.com/locations/india/mckinseyonindia/pdf/india_ban king_2010.pdf king_2010.pdf 7. 7. http://www.rupeetimes.com/news/personal_loan/foreign_banks_to_recohttp://www.rupeetimes.com/news/personal_loan/foreign_banks_to_reco nsider_growth_plans_for_india_2390.html nsider_growth_plans_for_india_2390.html 8. 8. http://www.livemint.com/2009/08/02205613/Capital-constraints-rising- http://www.livemint.com/2009/08/02205613/Capital-constraints-rising-ba.html?d=1 ba.html?d=1

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THANK YOU

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