Foreign banks brace for India regulatory shake-up that will force them to set up separately capitalised local subsidiaries
August 13, 2013 Leave a comment
Last updated: August 12, 2013 5:48 pm
Foreign banks brace for India regulatory shake-up
By James Crabtree in Mumbai
Standard Chartered, Citigroup and HSBC – the three largest foreign banks operating in India – are bracing themselves for a regulatory shake-up in the country that will, in effect, force them to set up separately capitalised local subsidiaries. The Reserve Bank of India’s new policy on overseas banks is “imminent”, and will potentially be unveiled as soon as this week, according to people familiar with the situation. Foreign banks control about 5 per cent of the assets in India’s banking sector, but face numerous regulatory restrictions, including strict limits on the number of branches they are permitted to open. Read more of this post