Despite regulatory hurdles, foreign banks continue to be in a sweet spot

If you were to compare profitability and return ratios, foreign players win hands down over state-run and even private banks

It’s easy to misunderstand Pramit Jhaveri, CEO of Citigroup (India), when he says, “It’s very much business as usual for us.” 

Few of his ilk have grown their books, and none have opted for local incorporation with its promise of near-national treatment. The last available consolidated data from the Reserve Bank of India shows there were 44 foreign banks with 295 branches at the of FY17; down from 46 and 325 branches in 2016. The fall is sharp, given that branch licences are hard to come by. In FY18, as a class they posted a net profit of Rs 103 billion,