Foreign Banks

Foreign bankers say India's long-term investment prospects remain strong despite FPI outflows, but capital flows hinge on global conditions, valuations and higher FDI inflows

Speaking at Day 1 of the BS BFSI Insight Summit 2026, foreign bank CEOs discussed FII outflows, the long-term India growth story, cross-border capital flows, and opportunities in SME financing

Federal Bank reported a 45% rise in Q2 FY27 net profit to ₹1,386 crore, aided by $1.5 billion raised through FCNR(B) deposits, while net interest income grew 26% to ₹3,153 crore

The Canadian banking major will occupy space at Meenakshi Eco Park for five years, paying Rs 225 per sq ft monthly, with rent escalating 5 per cent annually

HSBC has mobilised over $5 billion in FCNR(B) deposits under the RBI's swap scheme, leveraging its global network and expanding NRI banking presence in India

Some foreign banks are offering leverage of up to 19 times FCNR(B) deposits to attract NRI funds as lenders intensify mobilisation efforts under the RBI's special scheme

Foreign banks' share in total issuance grew to about 35% in the year ended March, from 28% to 30% in each of the preceding two fiscal years

The transaction marks one of the first acquisition financing deals executed by a private or foreign bank under the RBI's revised framework for bank-funded acquisitions

When it came to banking, the turf on which foreign banks play in India saw dramatic developments last year; the lens through which the banking regulator viewed them also changed

While India offers one of the most compelling growth opportunities in coming decades, overseas bidders in the financial sector face tight voting caps, onerous processes and long payback timelines

Foreign banks in India play to global strengths, channel foreign capital, and dominate FX and cross-border finance, complementing domestic banks in a highly competitive market

Panel chaired by DFS Secretary M Nagaraju reviewed RBI proposals for foreign banks amid a gradual decline in foreign bank presence and India's push for calibrated financial liberalisation

Lenders nudged to cut charges and maintain uniformity

RBI said FBB exposures to head offices and their branches will fall under LEF, while exposures to other group entities move to the ITE framework, with gross calculation retained

The rupee hit 90.41 per dollar intraday on Thursday before recovering to close at 89.98, as foreign banks sold dollars and RBI intervention stayed limited amid outflows and trade-deal uncertainty

To compete, lenders including Standard Chartered Plc and Barclays Plc, are looking to widen their onshore offerings to appeal to Indian corporates shifting their borrowing to rupees

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

The move is towards opening up the sector, but selectively, with regulatory scrutiny and special approval

RBI allows authorised dealer banks to open Special Rupee Vostro Accounts for foreign banks without prior approval, easing rules to boost rupee-based trade

The Reserve Bank of India has already cut its key repo rate by 100 basis points in an effort to jumpstart growth in the economy