Top 10 Foreign Banks in India 2024

Foreign banks bring crucial international expertise and capital to India’s BFSI industry, benefiting the country’s economic growth. The foreign direct investment they bring plays a significant role in spurring capital infusion, exports and government revenue while also creating new jobs and diversifying industries. Additionally, they enable technology transfer and contribute to maintaining economic stability. 

In the 1990s, foreign banks became more prominent in the country due to economic reforms and liberalization policies. India opened its doors to foreign investments and reduced trade barriers in 1991. To protect against bankruptcy, market volatility, taxation and creditors, the RBI introduced the “Ring-fencing” framework, which required foreign banks to separate their retail and wholesale banking operations in India. 

The blog will highlight the significant impact of foreign banks in the Indian banking sector, showcasing the top 10 foreign financial institutions and their contributions.

What are Foreign Banks?

A foreign bank is a financial institution that offers financial services to customers from outside its home country. A foreign bank branch operates under the regulations of both its home country and the country in which it is located. According to the Department of Financial Resources, Government of India, there are currently 45 foreign banks operating in India in 2024. 

Why Foreign Banks Matter in India?

Foreign banks in India have a significant impact on the Indian banking sector. They enhance competition, improve services and attract foreign investments. With their expertise, technology and financial services, they support and enhance India’s banking system. 

• Advances in Technology: Foreign banks have significantly contributed to the technological advancements in India’s banking sector by introducing advanced digital solutions. As a result, the overall banking system became more accessible, convenient and efficient for customers, leading to a positive impact on the financial services industry.
• More Competition: The entry of foreign banks has intensified competition in the Indian banking sector. As a result, customers now have access to better products and services, which has ultimately enhanced the quality of banking services and boosted customer satisfaction.
• Global Financial Market Access: Foreign banks have a significant advantage in the form of access to global financial markets. As a result, they can offer their customers a broader range of financial products and services. This has benefited the Indian banking sector by enhancing its competitiveness and attracting higher levels of foreign investment. 
• Financial Services Improvement: Foreign banks have significantly enhanced financial services in India. They have introduced international expertise and best practices, resulting in improved customer satisfaction and better financial inclusion, especially in rural and underdeveloped areas. 
• Capital Infusion: Foreign banks play a crucial role in strengthening India’s banking sector by bringing in capital from outside. This capital infusion contributes to the overall capital base of Indian banks, helping them improve their financial position. This, in turn, leads to a more robust and resilient banking system in India.
• Risk Diversification: Foreign banks play a significant role in risk diversification within the Indian financial system. By having exposure to various markets and economic conditions, they help to mitigate the risks that come with local economic downturns. This diversification is crucial in reducing the vulnerability of the Indian financial system to fluctuations in the domestic economy. 
• Corporate Governance Standards: Foreign banks, known for their high corporate governance standards and regulatory practices, have a significant impact on raising governance standards in the Indian banking sector. Through their presence and influence, they contribute to the enhancement of regulatory practices in India.

Types of Foreign Bank Offices Present in India (2024)

Foreign banks in India maintain their presence through various types of offices. We have compiled a list of types of foreign bank offices present in India in 2024. 

Office Type	Number of Banks	Bank Name
Branch/Wholly Owned Subsidiaries (WOS)	45	AB Bank Limited
		American Express Banking Corporation
		Australia and New Zealand Banking Group Ltd.
		Barclays Bank Plc.
		Bank of America
		Bank of Bahrain & Kuwait B.S.C.
		Bank of Ceylon
		Bank of China
		Bank of Nova Scotia
		BNP Paribas
		Citibank N.A.
		Cooperatieve Rabobank U.A./ Coöperatieve Centrale Raiffeisen- Boerenleenbank B.A.
		Credit Agricole Corporate & Investment Bank
		Credit Suisse A.G
		CTBC Bank Co., Ltd.
		DBS Bank India Limited (Subsidiary of DBS Bank Ltd.)
		Deutsche Bank A.G.
		Doha Bank Q.P.S.C
		Emirates NBD Bank PJSC
		First Abu Dhabi Bank PJSC
		FirstRand Bank Limited
		Hong Kong and Shanghai Banking Corporation Limited
		Industrial & Commercial Bank of China Ltd.
		Industrial Bank of Korea
		J.P. Morgan Chase Bank N.A.
		JSC VTB Bank
		KEB Hana Bank
		Kookmin Bank
		Krung Thai Bank Public Co. Ltd.
		Mashreqbank PSC
		Mizuho Bank Ltd.
		MUFG Bank, Ltd.
		NatWest Markets Plc
		NongHyup Bank
		PT Bank Maybank Indonesia TBK
		Qatar National Bank (Q.P.S.C.)
		Sberbank
		SBM Bank (India) Limited (Subsidiary of SBM Group)
		Shinhan Bank
		Societe Generale India
		Sonali Bank Limited
		Standard Chartered Bank
		Sumitomo Mitsui Banking Corporation
		United Overseas Bank Limited
		Woori Bank
Representative Office	31	Access Bank
		Banco Bilbao Vizcaya Argentaria
		Banco BPM S.p.A
		Banco de Sabadell SA
		Bank for Development and Foreign Economic Affairs (Vnesheconombank)
		Bank of Montreal
		Bank of Taiwan
		Busan Bank
		CaixaBank S.A.
		Caixa Geral de Depositos
		Commerzbank
		Credit Industriel et Commercial
		DNB Bank ASA
		DZ Bank AG
		Everest Bank Ltd.
		Gazprombank
		Global IME Bank Ltd
		Intesa Sanpaolo S.p.A
		ING Bank N.V.
		K.B.C. Bank N.V.
		KfW IPEX Bank GmbH
		Landesbank Baden – Wurttemberg
		Mega International Commercial Bank
		Monte Dei Paschi Di Sienna
		Natixis
		Raiffeisen Bank International AG
		Skandinaviska Enskilda Banken AB
		The Bank of New York Mellon
		Toronto Dominion Bank
		Wells Fargo Bank N.A.
		Zurcher Kantonalbank

 

Regulatory Frameworks Governing Foreign Banks in India

The regulatory frameworks governing foreign banks in India are very detailed and require an explanation of certain things for the understanding of the general public. So, we have instead shortened the information just to provide the readers with a brief overview. 

• Regulatory Body: The RBI plays a pivotal role in regulating foreign banks opening subsidiaries in India. Before establishing a presence in India, the home country bank regulator’s approval is required and the bank must demonstrate financial stability and effective supervision. 
• Capital Required: To establish the Indian subsidiary, a minimum capital investment of 3 billion rupees (40 million dollars) is required. Additionally, the subsidiary needs to maintain a sufficient capital reserve relative to its risk-weighted assets as a safety measure
• Board Members: The RBI specifies that the board of directors of the wholly owned subsidiary must be made up of a diverse group. Specifically, half of the board members should be Indian citizens residing in India, while the other half should not be directly engaged in the bank’s daily operations
• Rules: Wholly owned subsidiaries are typically subject to regulations similar to those governing new Indian private banks. Additionally, the RBI may impose certain restrictions on the operations of WOS to ensure compliance with regulatory requirements
• Banks with Existing Branches: If a foreign bank owns a branch in India, it has the option to convert it into a WOS. However, the bank must fulfil the eligibility criteria and maintain a good regulatory record
• Buying Indian Bank Shares: Foreign banks can potentially purchase shares in select Indian banks that require restructuring, subject to the RBI’s approval. The RBI will review the qualifications of those of the major shareholders of the bank
• Application Form: The application to establish a WOS should be submitted to the Reserve Bank of India in Mumbai. The application form can be conveniently accessed from the RBI’s official website for completion

List of Top 10 foreign Banks That are Currently Active in India

In this section, we have provided the readers with the list of the top 10 foreign banks that are currently active in India. 

1. HSBC India

HSBC has a long-standing presence in India. It started in 1853 with the establishment of the Mercantile Bank of India in Mumbai. By 1855, the Mercantile Bank had set up offices in various locations including Shanghai, Canton, Hong Kong, Singapore, Kolkata, Kandy, Colombo, Madras and London. In 1950, the bank relocated to its new head office building at Flora Mountain in Mumbai. 

The Mercantile Bank was acquired by the Hongkong and Shanghai Banking Corporation Limited in 1959. HSBC was later established in 1865 to cater to the merchants of the China coast and facilitate trade between the United States, Europe and China. 

HSBC in India has played a pivotal role in shaping the country’s banking sector and it holds the distinction of introducing India’s first ATM in 1987. 

2. Standard Chartered Bank

Standard Chartered Bank is one of the oldest foreign banks in India, having operated for over 160 years. It has a widespread presence with 100 branches in 42 cities. The bank offers a range of services including business, private, consumer, institutional, commercial and corporate banking. 

The group not only operates as a full-service universal bank but also has a Non-Banking Finance lending entity to support the bank’s presence in certain areas. Additionally, it runs a retail securities broking business and holds the distinction of being the first foreign bank to initiate banking activities in India’s International Financial Services Centre in GIFT City, Gujarat. 

They are a global banking group operating in 59 markets worldwide. Their main objective is to promote commerce and prosperity through their diverse offerings. 

3. Citi Bank

Citibank, formerly City Bank of New York, was founded in 1812 and has had a significant presence in India since 1902, offering various banking and financial services through a network of offices and ATMs. The bank employs around 7,500 individuals in the country and is led by Mr. Ashu Khullar. 

Citibank provides a wide range of financial services and its balance sheet is recognized for its strength in the Indian banking industry. With its extensive global network spanning 160 countries, Citibank has the advantage of conducting business and connecting with clients using local banking licenses. 

Its expertise in understanding local politics, business and economic conditions allows it to navigate and thrive in diverse markets. This enables the bank to seamlessly handle trillions of dollars in transactions daily, across different borders, currencies and asset classes.

4. Deutsche Bank

Deutsche Bank’s strong and profitable private clients franchise has solidified its position as a leader in Germany and Europe and it continues to expand in Asia, North America and key emerging markets. With over 90,000 employees in more than 57 countries, the bank offers unparalleled finance services globally, striving to be the top global provider of financial solutions and create exceptional value for its shareholders and people. 

Deutsche Bank in India is known for providing a comprehensive range of financial services to both corporate and individual clients. Their offerings include business process outsourcing, retail banking, wealth management, equities broking and investment banking. This makes Deutsche Bank a one-stop solution for a variety of financial needs in the country. 

5. Bank of America

Bank of America mainly operates in India through its corporate and investment banking business, rather than having a retail banking presence. Despite the absence of retail banking services, the bank maintains a substantial presence in the country through its corporate and investment activities. 

Bank of America operates in key Indian cities like Bangalore, Delhi and Mumbai. The bank provides a comprehensive suite of corporate and investment banking solutions to its clients. The bank offers a diverse range of services, catering to the needs of multinational corporations and financial institutions. These services include investment management, treasury services, finance, trade, corporate banking, mergers & acquisitions and capital markets. They are committed to providing comprehensive financial solutions to their clients while maintaining a global perspective. 

BofA (Bank of America) has a technology and operations centre in Mumbai that offers support services to the bank’s global operations. It is important to note that Bank of America in India operates as a separate entity with its license issued by the RBI. The Indian unit has a distinct board of directors and its assets and liabilities are separate from the bank’s operations in the USA. Furthermore, the Indian unit is subject to Indian laws and regulations. 

6. BNP Paribas

BNP Paribas has a rich history of over 150 years as a partner to India, establishing their presence in the country by opening a branch in Kolkata (erstwhile Calcutta) as one of the first foreign banks in 1860. Throughout its long-standing partnership, they have actively supported India’s economic development through diverse initiatives, growing alongside the nation. 

Early Days in India (1860-1945)

• BNP Paribas established its initial branch in Calcutta, which was a prominent trading hub during that era
• The main objective was to provide financial assistance for international trade, with a focus on facilitating imports for French companies from India
• Due to the thriving cotton trade, they decided to open a second branch in Mumbai (erstwhile Bombay)

Post-War Growth (1945-1990)

• BNP Paribas resumed its operations in India after the country gained independence, reopening its branch in Calcutta. Additionally, it expanded its presence by establishing a new branch in Delhi
• They made a significant investment in constructing a new building to accommodate their branch in Bombay

Becoming a Major Player (1990-2010)

• BNP Paribas enhanced its operations in India by introducing new employees and expanding their range of services
• To expand their offerings, they collaborated with multiple Indian companies to introduce a range of financial products such as insurance and investment services
• In 2010, BNP Paribas established itself as a prominent foreign bank in India, boasting a workforce of around 1000 employees

BNP Paribas reaffirms its dedication to India, viewing the country as a crucial element of its prospective expansion strategies. 

7. DBS Bank

DBS Bank, headquartered in Singapore, has established a strong presence in India, with operations in major cities like Nashik, Bengaluru, Pune, Chennai, Kolkata, Delhi and Mumbai. The bank is known for its innovative use of digital technologies to enhance the banking experience, especially for tech-savvy customers. 

In addition to its digital prowess, DBS offers a wide range of services including institutional banking, wealth management and consumer banking, solidifying its position as a leading bank in India’s financial sector. 

DBS offers a wide range of career opportunities in Asia and focuses on empowering its employees. The bank recognizes the passion and commitment of its diverse workforce of 26,000 individuals from over 40 different nationalities. 

8. Barclays Bank

Barclays plc is a major employer in India, with over 23,000 employees working in various sectors such as banking, technology and shared services. The company has a significant presence and plays a key role in the Indian job market. With a widespread workforce, Barclays plc contributes to the economy and provides employment opportunities for a large number of people. 

Barclays Bank plc has been operating in India since 1990 and has established itself as a leader in M&A advisory, investment banking and corporate banking. It has consistently ranked among the top arrangers of domestic debt and offshore bonds. Barclays has shown its commitment to the Indian market by investing over 800 million dollars, one of the highest capital commitments by a foreign bank. 

Barclays Securities & Investments Pvt Ltd (BSIPL) operating under Wealth & Investment Management, has quickly become a prominent player in the industry. In just five years, it has established itself as a leading entity and has been recognized as the Best Private Bank in India for 3 consecutive years by The Asset. 

Barclays Group’s subsidiaries, Barclays Shared Services and Barclays Technology Centre India play a critical role in employing top-notch talent to support the bank’s global operations and technology development. Their contributions enhance Barclay’s capabilities and ensure the delivery of high-quality services to its customers worldwide. 

9. Bank of Bahrain and Kuwait B.S.C

Bank of Bahrain & Kuwait or BBK has a dedicated team of professionals providing top-quality banking services. Since 1986, BBK has established its presence in India with 4 branches - New Delhi, Aluva and Hyderabad. The bank offers a wide range of high-quality credit facilities, deposit products, NRI services, dealing room facilities and a strong remittances department to ensure a comprehensive banking experience for its customers. 

BBK specializes in offering structured finances to mid-sized corporates and small and medium-sized enterprises (SMEs), as well as extending External Commercial Borrowings (ECBs) to large corporations in India for eligible uses. Its focus on providing financial solutions tailored to the needs of businesses sets it apart in the market. 

BBK branches in India have dedicated NRI desks that provide a wide range of services for Non-Resident Indians. These services include personalized banking, share market investments, portfolio investment services and mutual fund investments. 

10. Doha Bank

Doha Bank opened its first branch in India in Mumbai in June 2014 and currently has 2 branches located in Mumbai and Kochi. The bank also has a wide correspondence network globally to extend trade finance and remittance-related services. In addition, the bank offers credit facilities, a range of deposits and NRI services. The bank’s branches in India have fully-equipped NRI departments to provide personalized services to its customers. 

All Foreign Banks Currently Operational in India

Here is the list of all the foreign banks that are actively participating in India’s growth. The following table excludes those foreign banks we have already discussed above:

#	Bank Name
1	AB Bank Ltd.
2	Abu Dhabi Commercial Bank Ltd.
3	American Express Banking Corporation
4	Australia and New Zealand Banking Group Ltd.
5	Bank of Ceylon
6	Bank of China
7	Bank of Nova Scotia
8	Citibank N.A
9	Cooperatieve Rabobank U.A.
10	Credit Agricole Corporate & Investment Bank
11	Credit Suisse A.G
12	CTBC Bank Co., Ltd.
13	Deutsche Bank
14	Emirates Bank NBD
15	First Abu Dhabi Bank PJSC
16	FirstRand Bank Ltd
17	Industrial & Commercial Bank of China Ltd.
18	Industrial Bank of Korea
19	J.P. Morgan Chase Bank N.A.
20	JSC VTB Bank
21	KEB Hana Bank
22	Kookmin Bank
23	Krung Thai Bank Public Co. Ltd.
24	Mashreq Bank PSC
25	Mizuho Bank Ltd.
26	MUFG Bank, Ltd.
27	NatWest Markets Plc
28	PT Bank Maybank Indonesia TBK
29	Qatar National Bank (Q.P.S.C.)
30	Sberbank
31	SBM Bank (India) Limited*
32	Shinhan Bank
33	Societe Generale
34	Sonali Bank Ltd
35	Sumitomo Mitsui Banking Corporation
36	United Overseas Bank Ltd
37	Woori Bank

Conclusion

Foreign banks play a crucial role in accelerating India’s economic growth and promoting financial stability. Access to a wide range of foreign institutions makes it easier for individuals and businesses to invest overseas or secure capital through foreign direct investment (FDI). 

The 10 foreign banks discussed above are anticipated to have a significant impact on shaping the banking and financial sector of the country. 

Frequently Asked Questions (FAQs)

Q: What are the benefits of banking with a foreign bank in India?

A: Foreign banks can offer several advantages to Indian customers. Here are a few key benefits:

• Global reach
• Specialized products
• Advanced technology

Q: How do I choose the right foreign bank in India?

A: The ideal foreign bank for you will depend on your specific needs and financial goals. Here are some factors to consider when making your decision:

• The bank's area of expertise
• Branch network
• Products and services offered
• Fees and charges
• Online banking platform

Q: Are there any regulatory considerations for foreign banks in India?

A: The RBI regulates foreign banks in India, which can either have branches or wholly-owned subsidiaries. The RBI closely monitors their operations for financial stability and compliance with Indian regulations. 

Q: Is my money safe in a foreign bank in India?

A: Foreign banks in India are regulated and supervised just like domestic banks, meaning they must maintain capital reserves and implement strong risk management practices. Deposits made in foreign banks in India are generally deemed secure. However, it is recommended to thoroughly research the bank’s reputation and financial stability before proceeding. 

Q: Do I need a special type of account to bank with a foreign bank in India?

A: Foreign banks in India provide a range of account options, including savings, current and fixed deposit accounts, similar to those available from domestic banks. Your choice of account type should align with your specific banking requirements and objectives. 

Q: How can I find out more about a specific foreign bank in India?

A: Most foreign banks in India have comprehensive websites with information about their branches, services and products along with account opening criteria. You can visit their branches or contact customer service for more information. 

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