2014•Asian Journal of Research in Banking and FinanceRequires access

Financial Performance of Foreign Banks in India: A Study

Ankush Bhargava, Manisha Verma

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Abstract

Post Liberalisation Era paved the path for the great reforms in the banking sector; this led to a great deal of efficiency and profitability in the banking institutions. The foreign banking system is diverged and contains tremendous potential to impact the outcome of the Indian banking scenario. The present study thus focuses on ten banks out of the forty three foreign banks on grounds of comparative performance, profitability and growth rate. The study gives suggestive measures for the banks regarding operational inefficiencies. The study also reveals different areas where they can improve their financial performance. The study further put some light on the banks which are professionally managed and able to attract more customers and have grown much faster than other banks in the competition.

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Post Liberalisation Era paved the path for the great reforms in the banking sector; this led to a great deal of efficiency and profitability in the banking institutions. The foreign banking system is diverged and contains tremendous potential to impact the outcome of the Indian banking scenario. The present study thus focuses on ten banks out of the forty three foreign banks on grounds of comparative performance, profitability and growth rate. The study gives suggestive measures for the banks regarding operational inefficiencies. The study also reveals different areas where they can improve their financial performance. The study further put some light on the banks which are professionally managed and able to attract more customers and have grown much faster than other banks in the competition.

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Available abstract

Post Liberalisation Era paved the path for the great reforms in the banking sector; this led to a great deal of efficiency and profitability in the banking institutions. The foreign banking system is diverged and contains tremendous potential to impact the outcome of the Indian banking scenario. The present study thus focuses on ten banks out of the forty three foreign banks on grounds of comparative performance, profitability and growth rate. The study gives suggestive measures for the banks regarding operational inefficiencies. The study also reveals different areas where they can improve their financial performance. The study further put some light on the banks which are professionally managed and able to attract more customers and have grown much faster than other banks in the competition.

Key concepts: Profitability index, Liberalization, Competition (biology), Financial system, Business, Agriculture, Finance, Economics

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