Regulatory reform, capital depth draw global banks to India, say CEOs

At the Business Standard BFSI Insight Summit, CEOs of Citi, HSBC, and Standard Chartered say India's regulatory clarity and deepening markets are strengthening its appeal for global banks

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Global banks increasingly view India as one of their most promising markets, driven by regulatory predictability, new opportunities in acquisition financing, and a surge in domestic capital markets, top executives from Citi, HSBC, and Standard Chartered said at the Business Standard BFSI Insight Summit on Wednesday.

 

Welcome regulatory reforms

The panelists agreed that India’s regulatory environment has become more growth-oriented. “Our regulator is led by positive disruption. It is conducively looking at ease of doing business at this time,” said P D Singh, chief executive officer (India and South Asia), Standard Chartered Bank.

 

K Balasubramanian, chief executive officer of Citi India, said the Reserve Bank of India’s (RBI’s) new framework allowing foreign banks to participate in acquisition financing would deepen the capital pool in the system.

 

“If you have to choose one place where you have to do business, it is India. The regulation will have a positive impact. It will also allow a large pool of rupee liquidity as well. We are quite happy with it,” he said.

 

Hitendra Dave, CEO of HSBC India, said the revised norms would open up space for collaboration and capital flows. “Foreign banks have a competitive advantage in acquisition financing. The new RBI guidelines will open up financing for Indian firms. You will see partnerships taking place,” he said, pointing out that global banks have played a major role in Indian mergers and acquisitions outside the country or serve companies that have a global presence. 

Global capital seeks investment opportunity

Balasubramanian also pointed out that large pools of global capital are looking at India for scale and long-term participation. “There are lots of pools of capital available in Japan, the Middle East, Canada, and a few other locations. They are looking at the ability to scale up and participate in growth. (India) is one market where if you look at the runway ahead for the next 10 to 20 years, for all the demographic reasons, it looks positive,” he said.

 

Dave highlighted India’s macroeconomic resilience as a reason for sustained optimism. “Given the GDP growth, demographic, political and financial stability, and a well-regulated financial system, it should not surprise anyone that India will continue to remain in the Fortune 500 board,” he said.

 

Public issues, retail participation

On growing activity in capital markets, Dave added that the ongoing initial public offering (IPO) wave represents a strong opportunity for global banks. “It is a fantastic opportunity for foreign banks. The IPO market is one of the great things that has happened in India in the last few years. The year 2025 promises to be the largest IPO year of all time for India,” he said.

 

Balasubramanian added that the shift of household savings to financial assets has been a structural driver in the market. “Financialisation of savings has led to a large amount of money flowing into primary and secondary markets. Though foreigners have reduced their exposure to India, the markets have been strong thanks to the healthy domestic flows,” he said.

 

The panelists noted that given the confluence of regulatory clarity, global capital appetite, and domestic market depth, India is poised to remain a central focus for international banks’ growth strategies.  Catch all coverage of the Business Standard BFSI Summit 2025 Day 1 here