The operational history of foreign banks started with Standard Chartered bank that set up its first branch in
Kolkata in April 1858, a year after the so-called First War of Independence in which sepoys of the British East India
Company’s army rebelled against the rulers. Hong Kong and Shanghai Banking Corp. Ltd, or HSBC, has been in
India even longer. Its origin can be traced back to October 1853, when Mercantile Bank of India, London and China
was founded in Mumbai with an authorised capital of Rs.50 lakh. By 1855, Mercantile Bank had offices in London,
Chennai, Colombo, Kandy, Kolkata, Singapore, Hong Kong, Guangchow and Shanghai. It was acquired by HSBC in
1959. With close to a Rs. 1 trillion asset book, HSBC has 47 branches and three new branch licences in India.
Citibank NA, which has the biggest asset base among all foreign banks in India, is 107 years old. It has 42
branches across 29 centres. Among other foreign banks, ABN AMRO Holding NV, which came to India in 1920
(again, Kolkata was the first port of call), has 31 branches and Deutsche Bank AG, 30 years old in India, is present
in 12 centres through 13 branches. Barclays Bank Plc, which launched its India operations in November 2006, has
seven branches. This paper discussed the opportunities and challenges of foreign banks in India.

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