A Comparative Study of profitability of Foreign and Public Sector Banks in an emerging economy-A case study of India for the period 2000–2014

The paper attempts to bridge a gap in the literature of Foreign Banks in India by placing their profitability in a comparative perspective with public sector banks. Using as many as six indicators of profitability of Foreign Banks, the paper demonstrates that they earn significantly more profits compared to public sector banks. It appears that we are paying a huge cost to allow foreign banks practicing exclusive banking and remitting huge profits. Thus, it appears to be a zero sum game between Foreign Banks and the economy. If integration with global economy is what we gain, it is well known that global integration may have benefits but has its costs as well.