India has a lot of money, and foreign banks want to get their hands on it. India is a country with an expanding economy and increasing global presence. This has led to the growth of many international banks in India, which have been rapidly growing since the 1990s.
India’s economy is growing by leaps and bounds, but the banking system doesn’t have the infrastructure to support all this growth. It needs more branches, more ATMs, and better online services. Foreign banks see an opportunity in India with its over one billion people and fast-rising middle class. Foreign banks are investing billions of dollars in trying to grab a slice of this market.
What are Foreign Banks?
Before we know the top foreign banks in India, we need to understand the term ‘foreign bank’. A financial institution that operates in any other country than its home country is termed as a foreign bank.
In simple words, a bank that has its headquarters in some other country but has a presence in India is classified as a foreign bank in India.
Top Foreign Banks in India
There are a lot of international banks that operate in India. They have their branches, ATMs, and online services present in India just like any other Indian bank. Foreign banks that operate in India need to have a special license from the Reserve Bank of India.
Foreign banks in India have always played a major role in our economy, and for that matter, they are massively important to us Indians who live here because these foreign banks give us access to better financial services than what Indian banks offer.
Related article for your knowledge: Types of banks in India
Citibank is the largest foreign bank having its operations in India. The bank is headquartered in New York City, and it operates globally. Citibank has a total of 21 branches, 11 ATMs, and three online banking services that are available for its customers in India.
Some of the services that Citibank offers in India are personal and business banking, deposits, and investments, loans for both individuals and businesses, foreign exchange transactions, and global payments on a 24×365 basis to over 100 countries across six continents.
However, as of April 2021, Citibank has decided to wind up its ground operations from India.
2) Standard Chartered Bank
With its headquarter in London, Standard Chartered Bank is the third-largest foreign bank in India. The standard chartered bank has a total of 16 branches and 34 ATMs across eleven states in India. The services it offers are personal banking, SME finance, corporate banking, trade and supply chain finance, and advisory.
3) HSBC Bank
Another famous bank in the list of foreign banks in India is HSBC Bank. It has 13 branches and over 50 ATMs in India. The full form of HSBC is The Hongkong and Shanghai Banking Corporation Limited. It has its headquarters in Hong Kong.
HSBC Bank offers a wide range of banking products, including personal bank accounts, savings and investments, mortgages, and loans to individuals and businesses. The other services it has are international trade finance for SMEs; treasury operations; cash management solutions (cash pooling); cross-border payments.
4) Royal Bank of Scotland
RBC or the Royal Bank of Scotland, has its headquarters in Edinburgh, UK. The RBS offers financial services to private, commercial, and institutional clients across the UK as well as internationally. It also deals with mortgages, savings accounts for personal use, loans to individuals or businesses but does not offer current account facilities.
Many rich people in India have bank accounts in foreign banks such as RBS as a status symbol.
5) Deutsche Bank AG
Another foreign bank in India is Deutsche Bank AG. It has its headquarters in Frankfurt, Germany, and is the largest bank in Europe as well as one of the top ten banks globally.
Deutsche Bank was established on July 18th, 1870, with a share capital of £20 million. In India, Deutsche Bank established its first branch in the year 1980 and currently operates branches in 16 different cities.
6) Bank of America
Bank of America also has a presence in India. It is the largest bank in the US, with assets worth over $250 billion.
Bank of America was founded on October 16th, 1904, and started its operations in India in the year 1964. Today, BOA is present in 4 cities of India – Mumbai, Delhi, Chennai, and Bengaluru. It offers a wide range of products such as commercial loans, corporate deposits, etc. It also provides credit cards to its clients.
7) Barclays Bank
Barclays Bank was founded in 1896 and currently operates in 15 countries, including India. It is a sought-after foreign bank in India.
In 1957, Barclays opened its first branch at Kalbadevi Road, Mumbai. It has since grown to operate branches all across the country with a total of 192 offices as of date. The bank is known for its services that include credit cards, loans, savings accounts, etc. Barclays Bank in India is present in all major cities of India, especially in Mumbai.
Barclays bank is a British multinational banking and financial services company headquartered in London, England. It operates as Barclays plc with its primary listing on the London Stock Exchange and secondary listings on Euronext Amsterdam and the New York Stock Exchange. The group has operations across Europe, Africa, Asia Pacific region.
8) DBS Bank (Foreign Bank in India)
Another bank in the list of top foreign banks in India is the Development Bank of Singapore. DBS Bank in India is present in all major cities of India, especially in Mumbai. The bank has a total of six offices across the country.
DBS Bank is an international banking and financial services group with headquarters in Singapore. It operates as DBS Group Holdings Limited.
9) Doha Bank
Banks from the middle east have also set up their branches in India. One such bank is Doha Bank.
Doha Bank is an international bank with head office in Doha, Qatar, and representative offices operating in six Indian cities – Delhi, Kolkata, Chennai, Ahmedabad Hyderabad, and Bangalore. The bank has been operational since 2004.
10) Bank of Bahrain and Kuwait
Last but not least on our list of foreign banks in India is the Bank of Bahrain and Kuwait. As the name suggests, the bank has its headquarters in Kuwait, but it also has a presence in India.
The Bank of Bahrain and Kuwait (BBK) is an international bank with headquarters in Manama, Bahrain. The BBK carries out its banking activities through various subsidiaries that offer financial products and services to individuals as well as corporate customers worldwide.
In India, this foreign bank is present in Mumbai, Delhi, Kolkata, Chennai, and Bangalore.
End Notes on foreign banks in India
The ranking for this list has been compiled considering factors such as market share, geographical presence, customer base, asset size etc.
Foreign banks in India have been gaining importance over the last couple of years. With the Indian government opening FDI (Foreign Direct Investment) in the country’s financial institutions, more foreign banks are opening their offices in India. It is expected that in the coming 3 to 4 years, we will have over 25 more foreign banks in India.