Foreign Banks Exercise Exit Options

Smaller overseas institutions are in exodus mode as global consolidation and local laws put pressure on their India operations

Just about a year ago, foreign banks were gung-ho on India. Many of their global chiefs hit base, talking enthusiastically about pumping in fresh capital to bolster Indian operations and were even looking at acquisitions.

Suddenly, India is no longer the flavour of the year. Over the past few months, at least half-a-dozen smaller foreign banks have started closing shop while the mid-sized ones are selling off certain portfolios. Only the big banks