SIEMFACULTY OF MANAGEMENT

Presented to Mr. Nimesh sir

Presented by Bhavik Patel Hardik Bhandari Falguni Prjapati Panna Panchal Renison Christian

Presentation On

Foreign Bank

1

MeaningIntroductionList Of Foreign banks In IndiaUp coming Foreign BanksWhy Foreign Banks are coming in India?Financial Performance Of Foreign BanksIntroduction of some of the Foreign BanksConclusionReference

2

MEANING OF FOREIGN BANK

3

There are thirty-five foreign banks are present in India through 273 branches and 871 offsite ATMs.

There are 34 foreign banks operating through representative offices.

Standard Chartered Bank, the oldest foreign bank that came to India , now operates the maximum number of branches, 83.

It is followed by HSBC, which entered India in 1867, with 47 branches.

Citibank has 39 branches and ABN Amro, 28 branches and Deutsche 11.

http://www.indianmba.com/Faculty_Column/FC1089/fc1089.html

4

The share of foreign banks in the business done in the country has been hovering between 5 and 7 per cent during the past decade.

A new rule announced by the Reserve Bank of India for the foreign banks in India in the budget has put up great hopes among foreign banks which allow them to grow.

The rule is that :-

Now foreign banks in India are permitted to set up local subsidiaries. The policy conveys that foreign banks in India may not acquire Indian ones (except for weak banks identified by the RBI, on its terms) and their Indian subsidiaries will not be able to open branches freely.

5

1. ABN-AMRO Bank.2. Abu Dhabi Commercial Bank.3. American Express Bank Ltd. 4. Bank of Ceylon.5. BNP Paribas Bank. 6. Barclays Bank PLC. 7. Citi Bank.8. China Trust Commercial Bank.9. Deutsche Bank.10. DBS Bank Ltd.11. HSBC.12. JPMorgan Chase Bank.13. Standard Chartered Bank.14. Scotia Bank.15. State Bank of Mauritius Ltd. 16. Taib Bank.

http://www.iloveindia.com/finance/bank/foreign-banks/index.html

6

• Royal Bank of Scotland• Switzerland's UBS• US-based GE Capital• Credit Suisse Group• Industrial and Commercial Bank of China

http://finance.indiamart.com/investment_in_india/upcoming_foreign_banks.html

7

India's GDP

The credit of banks

Participation in the growth curve of the Indian economy

Liberal branch licensing policy

http://www.indianmba.com/Faculty_Column/FC1089/fc1089.html

8

Item 2007-08 2008-09 variation

      Absolute

A.INCOME  (i + ii) 17,662.07 24,959.06 7293.99i)Interest Income       of which : Interest on Advance                       Income on Investment    ii) Other Income        of which : Commission &Brokerage

12,290.827379.753,950.575,371.252,872.39

18,018.9210,941.495,432.046,937.143,789.29

5728.093,561.741,481.461,565.90916.89

B.EXPENDITURE (i+ii+iii) 14,593.47 20,370.90 5,777.43i)Interest Expended          of which :Interest on Depositsii) Provisions and Contingencies          of  which : Provision for NPAsiii) Operating Expenses          of which : Wage Bill

5,149.503,161.173,589.84

96.435,854.132,005.17

7,615.024,758.245,014.65332.48

7,741.223,081.11

2,465.531,597.071,424.81236.06

1,887.091,075.94

C.PROFIT      

i) Operating Profitii) Net Profit

6,658.443,068.60

9,599.814,585.16

2,941.371,516.56

D.NET INTEREST INCOME/MARGIN 7,141.33 10,403.89 3,262.57E.TOTAL ASSETS 1,99,358.03 2,78,016.49 78,658.46

http://www.indianmba.com/Faculty_Column/FC1089/fc1089.html

9

INTRODUCTION OF FOREIGN BANK WHICH ARE WORKING IN INDIA

Bank of Ceylon The bank was founded in 1939 by Sri Ernest de Silva and started

its first operation in Kandy in 1941. Bank of Ceylon in India opened its office at Chennai in

1995. BNP Paribas Bank BNP Paribas Bank is one of the oldest banking and

financial institutions in Europe and largest in Euro zone. BNP Paribas Bank is one of the earliest foreign banks in

India. It opened its office at Calcutta (Kolkotta) as early as 1860, and the bank operated in the name of Comptoir National d’Escompte de Paris (CNEP).

10

CONTINUE…. China Trust Commercial Bank China Trust Commercial Bank is one of the leading

private sector banks in Taiwan. Origin of this bank can be traced to 1966 when China Securities Investment Corporation (CSIC) was established.

China Trust Commercial Bank is one of the prominent branches among the foreign banks in India. It opened its office in 1996 and since then is playing a major role in promoting trade and commerce between India and China.

HSBC Bank HSBC Bank is the second largest banks in the world

only after Citi Group.It was founded in 1865 by Scotsman named Thomas Sutherland.

HSBC Bank started operation in India at Mumbai in 1953 after acquiring Mercantile Bank of India.

11

CONTINUE…. Citi Bank Citi Bank is the largest international bank having its

operations more than 100 countries. The origin of City Bank is traced to 1812 when the City Bank of New York was founded.

Citi Bank is a pioneer private bank. It started its Indian operations way back in 1902 at Kolkatta, the erstwhile capital of British Raj in India with an investment of around US$ 1 billion.

12

CONTINUE…. Deutsche Bank Deutsche Bank was established by Adelbert Delbrück in

Berlin in the year 1870. Deutsche Bank started its operation in India in 1980 at

Mumbai. Today this bank is one the strongest foreign banks in India having its branches in all major cities such as Delhi, Bangalore, Chennai, Kolkatta, Noida, Gurgoan & Aurangabad.

13

CONTINUE…. JPMorgan Chase Bank JPMorgan Chase Bank is one of the leading banks in the

world with an asset of US$2.2 trillion operating around 60 countries.

JPMorgan Chase Bank started its operations in India date back to 1930.

Standard Chartered Bank Standard Chartered is British bank established in the

year of 1969 by merging two Banks namely Chartered Bank of India, Australia and China and the Standard Bank of British South Africa.

The first branch of Standard Chartered was opened in Calcutta (Kolkatta) in the year 1858. The bank today operates over 83 locations. Its customer base has grown steadily and today it enjoys a customer base over 2.4 million including corporate as well as retail customers.

14

CONTINUE…. Scotia Bank Established in 1832, Scotia Bank offers varied range of

products to covering all section of clientele such as individual, business, corporate, investment banking. Scotia Bank has employed 47,000 staff in over 2000 branches world wide.

Scotia Bank is one of the main foreign banks in India. This bank operates five branches in India located in New Delhi, Mumbai, Bangalore, Hyderabad and Coimbatore. Under the brand name of “ScotiaMocatta” Scotia Bank offers various range products and financial services to all type of customers such as loans, mortgages, credit cards, investment products, insurance products.

15

CONTINUE…. Taib Bank TAIB Bank a Bahrain based private sector bank

established in 1979. TAIB Bank works as per regulations of Bahrain Monetary Agency.

Bank opened its first subsidiary taib Capital Corporation Ltd (TCCL) in 1995. Taib Bank was the first gulf based financial institution to set up its subsidiary in India.

16

S. No Name and address of the representative office

Country of   incorporation

Centre Date of opening

1. Commonwealth Bank Australia Bangalore 7.11.20052. National Bank Australia Ltd         Australia Mumbai 3.11.20063 Raiffeisen Zentral Bank Osterreich

AG        Austria Mumbai 1.11.1992

4 Fortis Bank         Belgium Mumbai 6.10.19875 KB.C. Bank N.V.         Belgium Mumbai 1.02.20036 Emirates Bank International         Dubai Mumbai 16.06.20007 Credit Industriel et Commercial      France New Delhi 1.04.19978 Natixis       France Mumbai 4.01.19999 Bayerische Hypo - und    

VereinsbankGermany Mumbai 12.07.1995

10 DZ Bank AG Deutsche Zentral       Germany Mumbai 22.02.199611 Landesbank Baden -

Wurtlemberg        Germany Mumbai 1.11.1999

12 Presdner Bank AG        Germany Mumbai 6.09.200213 Commerzbank   Germany Mumbai 23.12.200214 DEPFABank Ireland Mumbai 9.2.200715 Intesa San paolo Spa Intesa Sanpaolo

SpaIntesa San paolo Spa

20.01.1991

16 Uni Credito Italiano Italy Mumbai 1.08.199817 Banca Populare Di Verona E Novara Italy Mumbai 18.06.2001

17

18 BPU Banca -Banche Popolari Unite

Italy Mumbai 16.01.2006

19 Banca Popolare di Vicenza ItaIv Mumbai 29.04.200620 Monte Dei Paschi Di Sienna Italy Mumbai 07.04.200621 Banca di Roma Italv Mumbai 17.01.200722 Everest Bank Ltd Nepal New Delhi 24.03.200423 Caixa Geral de Depositos Portugal Mumbai Goa

(EC)8.11.1999

24 Vnesheconombank (Bank for Foreign Economic Affairs)

Russia New Delhi 1.3.1983

25 VTB India(Bank for Foreign Trade)

Russia New Delhi May 2005

26 Promsvvazbank Russia New Delhi 25.04.200627 Banco de Sabadell SA Spain New Delhi 2.08.200428 Banca Bilbao Vizcava Aroontaria,

BBVASpain Mumbai 2.4.2007

29 Hatton National Bank Sri Lanka Chennai 1.01.199930 UBSAG Switzerland Mumbai 24.11.199431 Zurcher Kantonalbank Switzerland Mumbai 27.06.200632 The Bank of New York USA Mumbai 27.10.198333 Wachovia Bank NA USA Mumbai 1.11.199634 Svenksa Handelsbanken Sweden Mumbai 1.8.200635 Westpac Australia Mumbai 1.10.2007

rbidocs.rbi.org.in/rdocs/Content/pdfs/71207.pdf

18

Foreign Banks in India always brought an explanation about the prompt services to customers. After the set up foreign banks in India, the banking sector in India also become competitive and accurative. India is expected to find a place in the strategy of these banks given the country's growth prospects. There have been cases of foreign banks closing shops in India too. India's GDP is seen growing at a robust pace of around 7 per cent over the next few years, throwing up opportunities for the banking sector. Participation in the growth curve of the Indian economy in the next four years will provide foreign banks a launch pad for greater business expansion when they get more freedom after few years

19

http://www.thehindubusinessline.com/2007/09/08/stories/2007090852210100.htm

http://www.indiastat.com/india/ShowData.asp?secid=104&ptid=3&level=2

http://in.rediff.com/money/2005/mar/08bank.htm

http://www.livemint.com/Articles/keywords.aspx?kw=Foreign%20bank

20

21

22