Foreign Banks Operating in India (2)

8/8/2019 Foreign Banks Operating in India (2)

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Foreign Banks

Operating in India

Soumalya Biswas

09DF056


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Overview

Introduction

Significance of Foreign banks in IndiaLicensing of Foreign Banks

Performance of Foreign Banks

List of Representative Offices ofForeign Banks in India.


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A Brief Introduction

Currently there are 29 foreign banks with 275

branches operating in India, as per RBIs annual

report. Presently there are 31 representative

offices of foreign banks in India. Under its

branch authorization policy, foreign banks have

to bring in an assigned capital of USD 25 million

at the time of opening its first branch and are

also required to submit their branch expansion

plans on an annual basis.


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Significance of Foreign

Banks in India

Entry of foreign banks have made the

banking sector competitive RBI has allowed to setup local

subsidiaries

But RBI has put a restriction on Indiancommercial banks (except weak units)

specially identified by RBI on its own

terms and conditions


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Licensing of Foreign

Banks

India issues a single class of banking licence to

foreign banks and does not place any limitations

on their operations. All banks can carry on bothretail and wholesale banking.

Deposit insurance cover is available uniformly to

all foreign banks which are operating at a non-

discriminatory rate of premium.

The capital adequacy norms, income recognition

and asset classification are by and large the same

with Indian PSBs & Private Banks.


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Performance of Foreign

Banks in Indian Banking

Industry

At present, there are 29 foreign banks

operating in India with a network of275 branches and 871 ATMs


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Total Assets of

Foreign Banks in

India (2009)

Name of the bank Total Assets (INR, Cr.)

Citi Bank 1,05,264

Standard Chartered Bank 97,492

HSBC Bank 94,620

ABNAMRO Bank 32,083

Deutsche Bank 24,955

Total of Foreign Banks in India 4,47,070

Source : Indian BankingAssociation


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Net NPA of Foreign

Banks

Name of the Bank 2008 (Rs Cr.) 2009 (Rs Cr.)

Citi Bank 472 1051

Standard Chartered Bank 345 514

HSBC Bank 175 391

ABNAMRO Bank 174 366

Deutsche Bank 15 77

Total of Foreign Banks in India 1,254 2,973



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Net Profit Of Foreign

Banks

Name of the Bank 2008 (Rs Cr.) 2009 (Rs Cr.)Citi Bank 1,804 2,173

Standard Chartered Bank 1,706 1,907

HSBC Bank 1,192 1,291

ABNAMRO Bank 281 19

Deutsche Bank 386 430

Total of Foreign Banks in India 6,613 7,509



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Foreign Banks in

India :Expenditure

Name of the Bank 2008 (Rs Cr.) 2009 (Rs Cr.)

Citi Bank 4,491 5,016

Standard Chartered

Bank

4,181 4,989

HSBC Bank 4,161 4,856

ABN

AMRO Bank 2,767 2,934

Deutsche Bank 1,591 1,743

Total of Foreign Banks

in India1254 2973



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Return on Assets &

Equity of FY 09

Further, for FY 09, the Return onAssets (ROA) of foreign banks was 35

per cent while the Return on Equity

(ROE) was 24.02 per cent



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List of Foreign Banks

having representative

offices in India

UBS AG, Switzerland

Barclays, UK ABN AMRO Bank, Netherlands

Abu Dhabi Commercial Bank, UAE

American Express, USA Bank ofAmerica, USA

Standard Chartered Bank, UK



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Contd.

Deutsche Zentral AG Bank, Germany

Barclays Bank, UK Bank of Nova Scotia, Canada

BNP Paribas, France

Citibank, USA HSBC, England

JP Morgan Chase Bank, USA



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Contd

State Bank of Mauritius

Development Bank of Singapore Calyon Bank, France

China Trust Commercial Bank

Antwerp Bank, Belgium Bank Internasional Indonesia

Bank of Ceylon, Sri Lanka



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Contd

Bank of Bahrain & Kuwait

Bank of Tokyo Mitsubishi

Krung Thai Bank, Thailand

Mashreq Bank, UAE

Mizuho Corporate Bank, Japan

Oman International Bank

Shinhan Bank, South Korea

Societe Generale, FranceSource : Indian BankingAssociation


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Any Questions

Thank You

Documents

Foreign Banks Operating in India (2)