List Of Foreign Banks In India(Top 10 International Banks In India)

The Indian banking sector has also been very efficient and well regulated over time. Various foreign banks have found their way into the Indian markets. As of 22 July 2020, there are 46 working Foreign banks in India(International Banks in India). 

Currently, the Indian banking system is dominated by public sector banks. Though the Indian economy is growing at its best pace, we still need more foreign banks in India to strengthen the backbone of the economy. 

Recent trends have shown the inimical behaviour of the government about the expansion of the field for establishing more foreign banks in India. Government should not overlook the key role played by foreign banks in uplifting the Indian market and its economy.

Here, we have listed all foreign banks, their branches, and representative offices in India, as per the RBI report.

What Is A Foreign Bank In India(International Bank In India)?

A foreign bank, as the name suggests, is an international bank. Any bank that opens its branch in a host country (India) but has its headquarters in its homeland is a foreign bank. In India, every foreign bank is obligated to follow rules and regulations as per guided by RBI and its parent bank.

HSBC and Citi banks are the oldest foreign banks in India. As per the RBI, there are 46 foreign banks and 37 representative offices of various international banks.

Types Of Foreign Banks In India(International Banks In India)

In India, foreign banks are in two forms: whether they have opened their branch in the host country or they are setting up their representative offices.

A branch of a foreign bank in India can engage in transactions, banking, or other monetary services, while a representative office can only be used to market the brand or can contact local markets.

Best Foreign Banks In India(Top International Banks In India)

1. Standard Chartered Bank 

Standard Chartered bank is operating 100 banking branches in India. It is one of the oldest foreign banks in India. Its headquarters are in London.

In 1969, a British African bank named Standard Bank was merged with India’s Charted bank, which is now working as a single body under the name of Standard Chartered Bank.

They offer a great variety of services like institutional banking, commercial and retail banking, consumer services, corporate services, lending service, and many more. It is the biggest and one of the best foreign banks in India.

2. HSBC

Hong Kong and Shanghai Banking Corporation is a Chinese foreign bank in India. They are operating 26 banking branches in India. HSBC is headquartered in London. It is the 6th largest public bank in the world.

HSBC acquired the mercantile bank in 1970 and found its way into the Indian market. HSBC is credited for introducing ATMs in India.

Their services include cash management solutions, trade services, and lending services. They also provide financial products and services for corporate and institutional clients.

3. Citi Bank

Citibank is the oldest foreign bank in India. It was founded in 1902 in West Bengal. It is a subsidiary of the Citigroup.

Citi bank introduced many financial technologies to Indian banking like credit cards, telephone customer service, and net banking.

They offer a broad range of financial products and services to their customers including corporate and investment banking. Citi bank is one of the best foreign banks in India with more than 4 lakh customers. 

4. Royal Bank Of Scotland (NatWest Market Plc)

The Royal Bank of Scotland was renamed NatWest Market Plc in Feb 2020. Now it is a subsidiary bank of NatWest Group. Their headquarters are in London. 

NatWest provides complete wealth management and corporate and commercial banking to its customers.

5. DBS

Development Bank of Singapore Limited is a foreign bank in India. DBS was founded by the government of Singapore in 1968. There are currently 33 active banking branches of the foreign bank.

DBS opened its first branch in 1995 as a foreign bank in India. Credit cards, ATMs, loans, commercial and corporate banking are some prominent services offered by the Development Bank of Singapore Limited. 

6. Deutsche Bank

Deutsche Bank is a German-based multinational financial institution. The bank opened its first branch in 1980 as a foreign bank in India. Currently, they are operating 16 branches across the country. 

Their headquarters are situated in Frankfurt, Germany. They provide services for private customers, corporates, and institutions.

7. Barclays Bank Plc.

With over 9 lakhs customers and 10 branches, Barclays Bank is a leading provider of financial services as a foreign bank in India. It is a British bank, headquartered in London.

They deliver services to NRIs, private and corporate customers. Other services include wealth management and loans.

8. Credit Agricole Corporate And Investment Bank

It is a multinational French corporate bank that is actively working in more than 32 markets. Their headquarters are in Paris. 

In India, the bank has established 5 branches. CACIB Bank offers a broad range of products and services to Indian companies, multinational companies, and financial institutions.

9. Bank Of America 

One of the prestigious financial bodies, Bank of America has established 5 branches in the country. Bank of America is ranked 2nd in terms of capitalism. 

They offer capital loans, wealth management, trade banking, corporate finance, and many more. Bank of America is one of the best foreign banks in India.

10. BNP Paribas 

Banque Nationale de Paris is a French foreign bank in India. It is the merger body of BNP and Paribas group. Their headquarters are in Paris. 

This foreign bank also offers investment services for individuals, cash deposits and withdrawals, Government transactions, and many more. They operate 8 branches across the country. 

List Of foreign Banks In India(International Banks In India) – Comparision Table

List Of Foreign(International) Banks’ Representative Offices In India

Also Read: The Private Banks in India – A Complete Guide

Role Of Foreign(International) Banks In India

For every developing economy, foreign banks can play a positive role in its growth. For the Indian economy, foreign banks can uplift its market. Some other pros of foreign banks in India are listed below.

• Foreign banks in India can enhance the efficiency of its local banking system by increasing competitiveness.
• They introduce new technology and innovation to local markets. Exempli Gratia, HSBC introduced ATMs to the locals.
• Foreign banks tend to have higher lendings with lower costs as they have access to their parent companies’ internal capital.
• During the recession period, these foreign banks in India can act as countercyclical. A Countercyclical body tends to show different behaviour during downturns or recession periods.
• Foreign banks in India can lend money to the country during economic downturns.

Also Read: Top 15 Best Debit Cards in India

Final Thoughts 

Banks are an important aspect of a growing economy. It has been observed that foreign banks in India do not have any effect on the profits of local banks. Currently, foreign banks in India make up only 1% of the banking sector, but hold more than 8% of monetary assets.

Indians should lower the marginal tax rate, other taxations and restrictions in order to bring more foreign banks in India and urge more international monetary bodies to open their subsidiaries in the country.

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