The Foreign Banks Branches In India

Published Date: 02 Nov 2017

ECS 4030

Foreign Banks entering developing countries:

The case of India

Shweta Chaudhary*

Msc Banking and Finance

Middlesex University Business School May 2013

*Views of the author are that of his own and does not reflect or influence the views of an individual

Acknowledgment

Abstract

Table of contents:

Introduction

A foreign bank is a bank that has been setup in a different country, which is its home country and is also serving customers of another country, the foreign countries. Foreign banks are active in India, just the way the local banks are. They are bound by all the rules and regulations that are applicable to banks based out of India and they are governed by the Reserve Bank of India that controls/governs all banks operating in India. In the recent years there had been a lot of transition of banks from Developed countries like US and Japan to Developing countries i.e. emerging economies of the world.

In this paper we will study the establishment of foreign banks from various countries making a mark in the Indian banking sector. As stated above these banks work under the rules and regulations of the Apex bank of India which is Reserve Bank of India.

The foreign banks working in India are as follows:

Foreign banks branches in India as on March 31, 2013

Sl.No

Name of bank

Country of

Incorporation

No of

Branches in

India

1

AB Bank Ltd.

Bangladesh

1

2

The Royal Bank of Scotland N.V.

Netherlands

31

3

Abu Dhabi Commercial Bank Ltd.

UAE

2

4

American Express Banking Corporation

USA

1

5

Antwerp Diamond Bank N.V.

Belgium

1

6

Bank Internasional Indonesia

Indonesia

1

7

Bank of America

USA

5

8

Bank of Bahrain & Kuwait BSC

Bahrain

2

9

Bank of Ceylon

Sri Lanka

1

10

Bank of Nova Scotia

Canada

5

11

Barclays Bank Plc.

United

Kingdom

7

12

BNP Paribas

France

8

13

Credit Agricole Corporate &

Investment Bank

France

5

14

Chinatrust Commercial Bank

Taiwan

2

15

Citibank N.A.

USA

42

16

DBS Bank Ltd.

Singapore

12

17

Deutsche Bank

Germany

18

18

HSBC Ltd

Hong Kong

50

19

J.P. Morgan Chase Bank N.A.

USA

1

20

JSC VTB Bank

Russia

1

21

Krung Thai Bank Public Co. Ltd.

Thailand

1

22

Mashreq Bank PSC

UAE

1

23

Mizuho Corporate Bank Ltd.

Japan

2

24

Oman International Bank SAOG

Sultanate of

Oman

2

25

Shinhan Bank

South Korea

3

26

Societe Generale

France

3

27

Sonali Bank Ltd.

Bangladesh

2

28

Standard Chartered Bank

United

Kingdom

101

29

State Bank of Mauritius

Mauritius

3

30

The Bank of Tokyo- Mitsubishi UFJ Ltd.

Japan

4

31

UBS AG

Switzerland

1

32

FirstRand Bank Ltd

South Africa

1

33

United Overseas Bank Ltd

Singapore

1

34

Commonwealth Bank of Australia

Australia

1

35

Sberbank

Russia

1

36

Credit Suisse A.G

Switzerland

1

37

Australia and New Zealand Banking Group

Ltd.

Australia

1

38

Rabobank International

Netherlands

1

39

Industrial & Commercial Bank of China Ltd.

China

1

40

Woori Bank

South Korea

1

41

National Australia Bank

Australia

1

42

Westpac Banking Corporation

Australia

1

43

Sumitomo Mitsui Banking Corporation

Japan

1

 

 

 

331

List of Foreign banks having Representative Offices in India as on March 2013.

Sr.

No.

Name of the representative office

Country of

incorporation

Centre

Date of

opening

1

Raiffeisen Zentral Bank Osterreich AG

Austria

Mumbai

1.11.1992

2

Fortis Bank

Belgium

Mumbai

6.10.1987

3

K.B.C. Bank N.V.

Belgium

Mumbai

1.02.2003

4

Royal Bank of Canada

Canada

Mumbai

1.2.2008

5

Toronto Dominion Bank

Canada

Mumbai

16.11.2009

6

Credit Industriel et Commercial

France

New Delhi

1.04.1997

7

Natixis

France

Mumbai

4.01.1999

8

Bayerische Hypo – und

Vereinsbank

Germany

Mumbai

12.07.1995

9

DZ Bank AG Deutsche Zentral –

Genossenschafts Bank

Germany

Mumbai

22.02.1996

10

Landesbank Baden – Wurttemberg

Germany

Mumbai

1.11.1999

11

Commerzbank

Germany

Mumbai

23.12.2002

12

BayernLB

Germany

Mumbai

15.4.2008

13

Norddeutsche Landesbank

Girozentrale (NORD LB)

Germany

Mumbai

1.9.2008

14

KfW IPEX Bank GmbH

Germany

Mumbai

1.4.2009

15

DEPFA Bank

Ireland

Mumbai

9.3.2007

16

Intesa Sanpaolo S.p.A

Italy

Mumbai

1.11.1988

17

Uni Credito Italiano

Italy

Mumbai

1.08.1998

18

Banca Populare Di Verona E Novara

Italy

Mumbai

18.06.2001

19

BPU Banca –Banche Popolari Unite

S.c.r.l

Italy

Mumbai

16.01.2006

20

Monte Dei Paschi Di Sienna

Italy

Mumbai

07.04.2006

21

Banca Popolare di Vicenza

Italy

Mumbai

29.04.2006

22

CIMB Bank Berhad

Malaysia

Mumbai

23.11.2010

23

Everest Bank Ltd.

Nepal

New Delhi

24.03.2004

24

DNB Bank ASA

Norway

Mumbai

27.8.2008

25

Caixa Geral de Depositos

Portugal

Mumbai

Goa (EC)

8.11.1999

26

Vnesheconombank

(Bank for Foreign Economic Affairs)

Russia

New Delhi

1.3.1983

27

Promsvyazbank

Russia

New Delhi

25.04.2006

28

Gazprombank

Russia

New Delhi

12.7.2010

29

Hana Bank

South Korea

New Delhi

 

30

Korea Exchange Bank

South Korea

New Delhi

27.8.2008

31

Kookmin Bank

South Korea

Mumbai

1.06.2012

32

Industrial Bank of Korea

South Korea

New Delhi

22.11.2012

33

Banco de Sabadell SA

Spain

New Delhi

2.08.2004

34

Banco Bilbao Vizcaya Argentaria

Spain

Mumbai

2.4.2007

35

CaixaBank S.A.

Spain

New Delhi

1.2.2011

36

Hatton National Bank

Sri Lanka

Chennai

1.01.1999

37

Svenska Handlesbanken

Sweden

Mumbai

1.08.2006

38

Skandinaviska Enskilda Banken AB

Sweden

New Delhi

1.02.2008

39

Zurcher Kantonalbank

Switzerland

Mumbai

27.06.2006

40

Mega International commercial Bank

Taiwan

Mumbai

2.12.2008

41

Asya Katilim Bankasi AS

Turkey

Mumbai

1.9.2012

42

Emirates Bank International

UAE

Mumbai

16.06.2000

43

First Gulf Bank

UAE

Mumbai

26.10.2009

44

Duncan Lawrie Ltd

United

Kingdom

Kolkata

30.10.2009

45

The Bank of New York Mellon

USA

Mumbai

27.10.1983

46

Wells Fargo Bank N.A.

USA

Mumbai

(Sub-office at Chennai & New Delhi)

1.11.1996

Liberalisation was introduced in Indian economy 18 years ago. Indian banking system is an animated cluster of competence enhanced Public Sector units and progress thirsty private sector banks. The services, money instruments, efficiency, IT facilities and management would have been a far off our vision 10 years ago. The amount of conveniences banks are providing to their corporate clients and retail customers has been improving and it was something no one ever imagined or even in their thoughts. Indian banking industry has witnessed exponential escalation the CNB Bank Index has shown a growth of 1100% in absolute terms, a compounded rate annual growth rate of 25% in the time period of 2000-2010. And if we look at the sensex, it grew at an compounded annual growth rate of 14%. The year 2010 was a good year for the Indian banking sector as it contributed to the GDP by 16.35%.

Empirical analysis strategy and assumptions:

The basic OLS specification used in this paper is the following:

yi ,d ,t = β0 +β1Foreign Bankd ,t +αi +δ t +ε i ,d ,t

Here, we have taken firm level outcome y of firm i as the dependent variable, in year t based in district d. The value y will involve measures of firms, unsettled stock of loans from Banks and FIs. Other various variables will narrated below.