Why Global Banks Are Banking on India

• Main Author: Knowledge@SMU
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2007
• Subjects: Accounting; Business; Finance and Financial Management
• Online Access: https://ink.library.smu.edu.sg/ksmu/87; https://ink.library.smu.edu.sg/cgi/viewcontent.cgi?article=1086&context=ksmu
• Institution: Singapore Management University

Foreign banks are aggressively expanding in India, both organically and through acquisitions. After playing along the sidelines in the country for more than 100 years, they have galvanized themselves to secure their share -- and more -- of the new action in the rapidly growing economy and a boom in high-profit consumer lending. India's central bank has outlined the roadmap for foreign players to grow, while the banking industry's robust fundamentals and crisis-free track record are other draws. To be sure, the entrenched public sector banks don't relish the charge of foreign banks. But the real rivals on the competing side of the growth equation are India's newly emergent private banks, which have snatched sizable market shares from their public sector counterparts. What this scenario promises are pitched battles for every slice of India's banking pie.