Globalization is providing both an opportunity and challenge to Indian and foreign banks to expand their overseas operations. In India, leading foreign banks such as Standard Charted Bank, Citibank, ABN Amro Bank, etc have been carrying out their operations vigorously for over a decade with ambitious plans to expand them in rural areas as well. Similarly, many leading Indian banks, both public and private, have also been expanding their social banking and overseas activities by opening up overseas branches and expanding portfolio of their products and services for overseas operations. Being more IT and web-enabled and superior technology driven over the years, many overseas banks currently operating in India have long experience of overseas operations. Foreign banks accordingly earn greater revenues and profits, generate more business per branch, earn greater revenues from different market segment, operate with less overheads, and have greater market share and customer retention with their more established products and services. Indian banks have traditionally limited their operations within domestic markets only but realizing vast untapped potential unleashed by globalization, many leading Indian banks have expanded their overseas activity and pursuing them within the WTO framework. WTO promotes trade among nations by facilitating deals which are acceptable to member nations in a fair and balanced manner. Several leading Indian banks like Bank of India, State Bank of India, Bank of Baroda, etc. have a successful track record of their overseas operations. In this paper, it is attempted to review challenges and opportunities of select leading banks in India within the backdrop of their plans for overseas markets and financial inclusion covering all sections of society in domestic sector in keeping with the social objectives of the Government of India.
Globalization, WTO, financial inclusion, micro finance corporate governance, social banking, commercial banks
