Financial institutions that serve customers outside of their own country are referred to as “Foreign Banks.” A Foreign Bank branch operates as a kind of international bank, subject to the regulations of both its home country and the country in which it has a physical presence. As of the year 2022, 46 international banks have established operations in India, as reported by the country’s central bank. A total of 45 international banks operate in India, with most of their roughly 300 branches concentrated in the country’s largest cities.
Foreign companies operating in a country may have a positive impact in two ways: they can raise the volume of the country’s exports and imports, and they can provide more job possibilities for the country’s skilled workers. Foreign banks in India account for only 1% of the country’s branch network, but they contribute 11% of the country’s banking sector profits. This is because these banks are specialised in areas like trade finance, wholesale lending, external commercial borrowing, treasury service, and investment banking rather than general retail banking.
RBI’s requirements
According to the Reserve Bank of India, foreign banks operating in India must have a capitalisation of at least $5 million in order to reach the minimum threshold for doing business in the country, which is based on two fundamental principles: reciprocity and a single mode of presence.
Reciprocity- Banks from other countries are treated with the same degree of deference and tolerance as their Indian counterparts inside India’s borders.
Single Mode of Presence- Even though there aren’t many foreign banks with a single mode of presence in India, those that do manage their clients well, provide back to the economy in the form of capital, and are subject to oversight by the Reserve Bank of India.
List of foreign banks in India
Name of the Bank |
Headquarters |
| AB Bank Ltd. | Dhaka, Bangladesh |
| Abu Dhabi Commercial Bank Ltd | Abu Dhabi, United Arab Emirates |
| American Express Banking Corporation | New York, United States |
| Australia and New Zealand Banking Group Ltd. | Melbourne, Australia |
| Barclays Bank Plc | London, United Kingdom |
| Bank of America | Charlotte, North Carolina, United States |
| Bank of Bahrain & Kuwait BSC | Manama, Bahrain |
| Bank of Ceylon | Colombo, Sri Lanka |
| Bank of China | Beijing, China |
| Bank of Nova Scotia | Toronto, Canada |
| BNP Paribas | Paris, France |
| Citibank N.A | New York, United States |
| Rabobank | Utrecht, Netherlands |
| Credit Agricole Corporate & Investment Bank | Paris, France |
| Credit Suisse A.G | Zürich, Switzerland |
| CTBC Bank Co. Ltd. | Nangang District, Taipei, Taiwan |
| DBS Bank India Limited | Singapore |
| Deutsche Bank | Frankfurt, Germany |
| Doha Bank | Doha, Qatar |
| Emirates Bank NBD | Dubai, United Arab Emirates |
| First Abu Dhabi Bank | Abu Dhabi, United Arab Emirates |
| FirstRand Bank Ltd | Johannesburg, South Africa |
| HSBC Ltd | London, England, UK |
| Industrial & Commercial Bank of China Ltd. | Xicheng District, Beijing, China |
| Industrial Bank of Korea | Jung-gu, Seoul, South Korea |
| J.P. Morgan Chase Bank N.A. | New York, USA |
| JSC VTB Bank | Moscow, Russia |
| KEB Hana Bank | Seoul, South Korea |
| Kookmin Bank | Seoul, South Korea |
| Krung Thai Bank Public Co. Ltd. | Watthana, Bangkok, Thailand |
| Mashreq Bank PSC | Dubai, United Arab Emirates |
| Mizuho Bank Ltd. | Chiyoda City, Tokyo, Japan |
| MUFG Bank, Ltd. | Chiyoda City, Tokyo, Japan |
| NatWest Markets Plc | London, United Kingdom |
| PT Bank Maybank Indonesia TBK | Senayan, Jakarta, Indonesia |
| Qatar National Bank (Q.P.S.C.) | Doha, Qatar |
| Sberbank | Moscow, Russia |
| SBM Bank (India) Limited | Port Louis, Mauritius |
| Shinhan Bank | Jung-gu, Seoul, South Korea |
| Societe Generale | Paris, France |
| Sonali Bank Ltd. | Dhaka, Bangladesh |
| Standard Chartered Bank | London, England, UK |
| Sumitomo Mitsui Banking Corporation | Chiyoda City, Tokyo, Japan |
| United Overseas Bank Ltd | Singapore |
| Westpac Banking Corporation | Sydney, Australia |
| Woori Bank | Jung-gu, Seoul, South Korea |
Biggest overseas bank in India
Standard Chartered Bank of London, which is the biggest bank in India, has 100 offices around the country and provides credit cards, online banking, and personal banking to Indian clients in accordance with guidelines set forth by the Reserve Bank of India (RBI).
Compliance with RBI rules means foreign banks in India may market their banking products and services to Indian consumers; these banks do, in fact, provide credit cards, debit cards, and other financial services to Indian clients.
Other top 5 foreign banks in India
Citibank
As early as 1812, the City Bank of New York opened for business in New York (USA), marking the beginning of what would eventually become Citibank. In 1902, Citibank set up a shop in India with the intention of providing customers with banking, investment, consulting, risk management, and transaction services.
HSBC India
The Hong Kong and Shanghai Banking Corporation has a wholly-owned subsidiary in India called HSBC Bank India. The Mumbai-based Indian subsidiary provides a wide range of financial products and services, including retail banking, personal banking, debit and credit cards, loans, and foreign exchange.
Deutsche Bank
Deutsche Bank was originally founded in Frankfurt, Germany. Established in 1980 in Mumbai, the financial hub of India, the bank’s Indian affiliate has since expanded throughout the nation. The bank now has 17 locations throughout India and a respectable 5 lakh customers.
Royal Bank of Scotland
In 1921, the Royal Bank of Scotland opened a branch in India with the intention of providing a full range of banking products and services. In addition to providing debt capital market services, the bank also ranks well among the top foreign banks in India. Its 10 branches, all of which are situated in major urban centres, help make this possible.
DBS Bank
DBS, a wholly owned subsidiary of Singapore’s Development Bank, was founded with the express purpose of fostering economic cooperation between India and Singapore. The bank first opened its doors in 1994, and its current headquarters is in Mumbai, India.
learn about: Types of banks in India
FAQs
In terms of size, what is the most prominent international bank in India?
Standard Chartered Bank, headquartered in the UK, is the biggest foreign bank in India. The current number of Standard Chartered Bank locations in India is 100.
The number of international banks in India is?
As of the year 2022, 46 international banks have established operations in India, as reported by the country's central bank.
What is the name of the Indian bank that has the most outposts throughout the world?
With 52 foreign locations, the State Bank of India (SBI) is India's preeminent global financial institution.
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