RBI to review road map of foreign banks in India

RBI would undertake a "wholesome review regarding the road map" of foreign banks in the country, its Deputy Governor V Leeladhar said today.    

He said the first phase of the roadmap of foreign banks was coming to an end in March next year.     "There is a review to be made; wholesome review to be made", Leeladhar told reporters in response to questions on the sidelines of a function here.   

 Under the first phase of liberalisation in the banking sector, allowed by the RBI, foreign banks can establish presence by way of setting up a wholly-owned subsidiary (WOS) or conversion of existing branches into a WOS.    

The first phase of liberalisation, initiated in 2005, was aimed at giving a chance to the domestic banks to strengthen their presence and financial positions through consolidation and reform process.     

To a question, Leeladhar said the growth of advances by Indian banks was 26 per cent year-on-year in the July 2007-June 2008 period. Credit growth of banks so far (in the current financial year) had been healthy, he added.