Foreign Banks Quitting India -AIBOC

Foreign Banks Quitting India -AIBOC

Learn from the Experience of Foreign Banks quitting India:- It is also very important to see the trend of Foreign Banks’ operations in India. India has ceased to be a priority for multinational foreign banks since the financial crisis, as high capital and regulatory requirements in India have forced them to retreat into their domestic markets to save on costs and protect profitability. Now, let us have a look at some statistics. In the last five years, Deutsche Bank has sold its credit card business, Barclays has shut its retail banking business; Swiss lender UBS has given up its banking licence and so did US-based multinationals Morgan Stanley and Goldman Sachs; Bank of AmericaMerrill

Lynch sold its wealth management business to Julius Baer and Dutch banking group ING sold its Indian operations to Kotak Mahindra Bank. The exodus continued in 2015 with British bank RBS, which shut 23 of its 31 branches in India. Again, Standard Chartered reduced by a quarter its staff in corporate and investment banking. HSBC, too, announced that it will shut down its private banking business. These foreign banks have been closing down their business in India owing to high capital and regulatory requirements in India; but the domestic banks do not have any option. At one end, we have to continuously endure the onslaught of the RBI and Govt and on the other hand, we are duty bound to serve the masses of the nation. Hence there is an urgent need to change the Asset Classification and provisioning norms as well as Capital Adequacy norms.

Source:AIBOC