A Selective Study On Foreign Banks in India

A Selective Study on Foreign
Banks in India
Submitted By:Apporv Srivastava
Ayush Aggarwal
Ayush Narayan
Ayushi Pandey
History of Foreign Banks in India

Banking in India started with setting up two banks in last decade of 18 th century. The banks were The
General Bank of India (1786) and Bank of Hindustan (1790) both of them are known defunct. Then
came bank of Calcutta (June 1806), which finally became State Bank of India. The Allahabad bank
established in 1865 and still functioning today is the oldest joint stock bank still functioning in India.
At the time of bank nationalization in 1969, the entry of foreign banks in Indian was banned. The Ban
was however lifted in 1980.The Bank of Tokyo, the chartered Banks, the first National City Bank Of
New York, the Grind lays Bank, The Lloyds Bank, The Mercantile Bank In India, etc. are some of the
prominent foreign banks which are presently operating in India
Foreign banks too started to arrive, particularly inCalcutta, in the 1860s. TheComptoire dEscompte
de Parisopened a branch in Calcutta in 1860, and another inBombayin 1862; branches
inMadrasandPondicherry, then a French colony, followed.HSBCestablished itself inBengalin 1869.
Calcutta was the most active trading port in India, mainly due to the trade of theBritish Empire, and
so became a banking center.
Standard CharteredBank started its operation in 1858 and citi bank opened its branch in India in 1902.
Similarly Hong Kong and Shanghai Banking Corporation started functioning in India since 1953.
However globalization and economic policies were implemented in late 1980s. Which encouraged
many international banks to open their branches in India. At present almost all the international banks
are operating in India.
At the end-March 1987, there were 21 foreign banks with 136 branches in India. During 1960-80, the
total assets of foreign banks had increased over five times from RS.411.4 corers to Rs.2, 261.0 corers.
In 1980, their assets growth rate was 22.5 percent as against 4 percent in 1965.Initially these banks
were started merely to finance Indias foreign trade. As on June 30 th June 2012 there is 34 foreign
Citibank
Started its operations in India in the year 1902 in Kolkata and is
currently headed by Mr. Pramit Jhaveri, the CEO of Citi INDIA.
The bank operates 45 Citibank branches in 28 cities and is the
preferred banker to 45,000 small and mid-sized companies across
India.
Citi helped lay the foundation of the Indian software industry by
establishing Citicorp Overseas Software Ltd. and Iflex Solutions Ltd.
Citi India added two more green certified buildings to its office
premises in 2012, and in 2013 moved its headquarters to The First
International Financial Centre (FIFC), a world-class environmentally
friendly building.
Citibank Timeline of Events in India

1985: First bank to launch a dedicated platform focused on serving the
unique banking and wealth management needs of the Non Resident Indian.
1986: Pioneered Cash Management.
1993/1998/2001: First to offer 24-hour Phone banking/Internet banking/SMS
alerts.
2009: First to bring to India next-generation contactless Credit Card
payments based on Near Field Communications technology with Citi Tap and
Pay.
2010: First brokerage house to launch Financial Information Exchange (FIX)
protocol, the industry-driven international messaging standard, adopted by
NSE.
2012: First to roll out SMS-to-Call and Click-to-Call; instantly connecting
customers to Citibank officers.
2012: Launch of India's first airline agnostic card through Citi PremierMiles.
Citibank Timeline of Events in India(contd.)

2012: First Smart Banking Branch launch in India.
2012: Launch of market-first mobile-banking receivables solution Citi Mobile
Collect.
2013: Launch of the First Fully Integrated and Certified Mobile Payment
Solution.
2013: Instant Credit Card issuance at Mumbai's first mall-based smartbanking branch at Palladium, Lower Parel, Mumbai.
2014: Citi Prestige, Citi's first global credit card and Citi Ultima, a 'by
invitation only' credit card.
2015: Launched ATM funds transfer via IMPS
2015: Lauched Citi MasterPass, Indias first global wallet
Prominent Deals of Citibank

Debt Capital Market (Citi has been joint book runner
to) :
Adani Ports and Special Economic Zone Limitedfor its inaugural USD650 million 3.50% 5-year Senior
Unsecured Fixed Rate Notes Offering. Citi was also Joint Lead Manager on the deal.
Reliance Industries Ltdfor a USD1.0 billion 10-year Fixed Rate Senior Unsecured Notes under the 144A/Reg S
offering format. Citi was also Joint Global Coordinator on the deal.
Delhi International Airport Private Ltdfor an inaugural USD288.75 million 7-year Senior Secured USD bond at a
coupon of 6.125%. Citi was also Joint Global Coordinator on the deal.
Reliance Industries Ltdfor a USD750 million 30-year Fixed Rate Senior Unsecured Notes under the 144A/Reg S
offering format. Citi was also Joint Lead Manager on the deal.
Bharat Petroleum Corporation Limitedfor a USD500 million 4.000% 10-year Fixed Rate Senior Unsecured Notes
Offering under the Reg S format.
Bank of Indiafor a USD750 million 3.125% 5-year Fixed Rate Senior Unsecured Notes Offering under the Reg S
format.
Export-Import Bank of Indiafor a USD500 million 2.750% 5.5-year Fixed Rate Senior Unsecured Notes Offering
under the Reg S format. The transaction was the first USD bond issuance by an Indian Financial Institution in 2015.
Prominent Deals of
Citibank(contd.)
Equity Capital
Market (Citi has been sole book runner to) :
Apollo Private Equityto sell their 7.4% stake in Dish TV through 2 block trades - USD77
million (4.4%) and USD42 million (3.0%) block trades. Both trades were executed at tight
discounts despite the recent sharp run up in the Dish TV stock.
AB Volvo, to sell their 8.4% stake in Eicher Motors (Eicher) through 2 block trades - USD270
million (3.7%) in June 2015 and USD310 million (4.7%) in March 2015. Citi provided a one-stop
solution to Volvo across custody, brokerage, investment banking and FX.
Citi has been joint book runner to:
Tata Motors'USD1.2 billion Rights Offering - the first Indian rights offering involving multiple
equity securities and the first SEC registered ADR rights offering by an Indian corporate. Citi
was the designated lead coordinator anchoring all aspects of the transaction, providing a
comprehensive suite of services to Tata Motors across Investment Banking, Capital Markets,
Depositary and FX services to ensure a smooth and flawless execution.
UFO MoviezsINR 6 billion Initial Public Offering ("IPO") - the first IPO in the digital cinema
distribution and in-cinema advertising business in India. Led the global marketing effort to
position the company as a unique Indian in-cinema advertising play, given no listed peers in
India or globally.
Prominent Deals of
Citibank(contd.)
Mergers & Acquisitions:Advised:
Lafarge Holcimon the proposed divestment of certain of its assets in India with an annual cement
capacity of 5.15 million tones, for an enterprise value of INR50,000 million (approximately USD775
million), to Birla Corporation Limited, subject to the approval of the Competition Commission of India.
The Rohatyn Group and other shareholders ofShare khan Limited(Indias leading online retail
broking house) on the proposed sale of their 100% stake in Share khan to BNP Paribas.
ABN Amro Bank N.V.on the sale of its diamond and jewellery activities to IndusInd Bank
Limited.The business being transferred has total assets of approximately INR 45 billion (USD723
million), and is the premium lender for the diamond and jewellery industry in India, financing the flow
of goods through the diamond value chain.
Reliance Industries Ltd.andPioneer Natural Resourceson the announced sale of 100% interest
in EFS Midstream LLC to Enterprise Products Partners L.P. for a total consideration of USD2.15 billion.
Center bridge Partners LPon its acquisition of Senvion SE, a 100% subsidiary of Suzlon Ltd in an
all-cash transaction, valued at EUR 1 billion.
One97 Communications(which runs Paytm, India's largest mobile payment and commerce
platform) on a minority stake sale to Ant Financial Services Group of China.
ABN AMBRO BANK
ABN AMBRO BANK

Presence in India
The ABN AMRO Bank registers a comprehensive presence in India,
Its offices located in all the prominent cities of the country.
Its office located at Nariman Point, Mumbai, governs the Personal and
Business Banking.
its New Delhi office located at Barakhamba Road governs matters, manages
the Corporate and Institutional Banking and Private Banking services of the
bank.
The bank also offers specialized services to international diamond and

jewellery merchants, and its Mumbai office serves as the regional office for
catering to the needs of diamond and the jewellery merchants in the Indian
Sub-continent.
The bank also provides a diverse range of high quality Portfolio Advisory
Services along with a comprehensive transaction execution platform in
India. ABN AMRO (India) has branches in many cities of India, such as
Bangalore, Baroda, Chennai, Delhi, Gurgaon, Hyderabad, Kolkata, Lucknow,
ABN AMBRO BANK(contd.)

Microfinance Program
The ABN AMRO Bank has also initiated its Microfinance
program in India.
It is the largest one among the same being offered by
foreign banks in the country.
Under the program, the bank deploys intermediary
agencies called microfinance institutions for delivering
micro loans less than USD 200 to its target consumer
group of poor women with rural background.
Till the month of April 2009, more than 390,000
customers spanning across 16 states in India were
receiving micro financing small loans through its 26 Micro
RBS BANK
THE ROYAL BANK OF SCOTLAND(RBS)
The Royal Bank of Scotland was founded in 1727 and has a history of over three hundred
years. With its rich history, it has become one of the largest financial service groups in the
world. It provides banking services for individuals, corporate houses and institutions. The
headquarters of Royal Bank of Scotland is in Edinburgh, Scotland. The bank is a part of
retail banking subsidiaries of the Royal Bank of Scotland Group and along with NatWest
and Ulster Bank, provides branch-banking facilities in the United Kingdom. The Royal Bank
of Scotland and the Royal Bank of Scotland Group are completely separate from the Bank
of Scotland, which was established in 1695 and is also based in Edinburgh, Scotland.
The Royal Bank of Scotland has around 700 branches, mainly in Scotland. The bank has a
number of branches spread in many large towns and cities throughout England and Wales.
The Royal Bank of Scotland Group provides a strong support to large enterprises, including
multi-national corporations (MNC) and financial institutions. It offers integrated consumer
and business banking services including transaction banking, risk management,
investment banking, private banking and asset management. In the year 2007, the Royal
Bank of Scotland Group strengthened its global presence through purchasing several parts
of the Dutch bank, ABN AMRO, including their businesses in India.
THE ROYAL BANK OF SCOTLAND(contd.)
Presence in India: The history of Royal Bank of Scotland in India goes back to 1921. Since
then, the bank has expanded significantly across the country, with more than 3,000 staff in
Kolkata, Mumbai, New Delhi, Chennai, Pune, Baroda, Hyderabad, Bengaluru, Noida, Gurgaon and
Surat branches. There are total of 28 branches throughout the country with 1.3 million
customers.
Products and Services: The Royal Bank of Scotland has several extensive operations in
Mumbai, Delhi and Chennai and plans to be a major competitor in the Indian market. Using its
global reach and expertise of research team, sales and trading, equity capital market and
mergers & acquisitions (M&A) advisory professionals, the bank has made some of the biggest
and most innovative landmark transactions in India for the corporate and institutional clients.
The bank is also providing a wide range of services such as transaction banking, fixed income
and foreign exchange products and services, including sales and trading, fixed income
origination, derivatives, structured lending and commodity financing.
Apart of these services, the Royal Bank of Scotland is providing a diverse range of product
offerings including personal loans, credit cards, savings accounts, financial planning, investment
and insurance services, which will significantly meet the daily financial needs of over a million
personal banking clients in India. The bank's asset management segment in just two years of its
initial operations in the country has emerged to be amongst the fastest growing asset managers.
The bank is looking forward to being a leading player in the Indian asset management industry.
With the help of its comprehensive research and diverse range of investment products, the bank
is offering clients investment options in fixed income, equities, money markets and structured

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A Selective Study on Foreign

History of Foreign Banks in India

Citibank Timeline of Events in India

Citibank Timeline of Events in India(contd.)

Prominent Deals of Citibank

Citi has been joint book runner to:

ABN AMBRO BANK

ABN AMBRO BANK

The ABN AMRO Bank registers a comprehensive presence in India,

Its offices located in all the prominent cities of the country.

The bank also offers specialized services to international diamond and

ABN AMBRO BANK(contd.)

THE ROYAL BANK OF SCOTLAND(RBS)

THE ROYAL BANK OF SCOTLAND(contd.)

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