Foreign Banks in India

Foreign and International banks have introduced latest technology and latest banking practices in India. They've helped made Indian Banking system more aggressive, competitive and efficient. Government of India has come up with a road map for growth of foreign banks in India.

The road map has 2 phases of expansion. In the course of the 1st phase between March 2005 and March 2009, foreign and international banks could establish a presence by way of organising a wholly owned subsidiary (WOS) or conversion of current branches into a WOS. The second phase was started on April 2009 after a review of the expertise gained after due consultation with all the stake holders within the indian banking sector. The review would examine points regarding extension of nationwide treatment to WOS, dilution of stake and allowing mergers or acquisitions of any private sector banks in India by a overseas bank.

By the end of 2009, the list of foreign banks in India goes to more competitive as the number of foreign banks are still ready with baggage to begin business in India. Foreign Banks aren't new phenomena in Indian banking industry. Standard Charted Bank began its banking operation in 1858 and Citi Bank opened its branch in India in 1902.