Operational characteristics, strategies and performance of foreign and demestic banks in India

This paper has tried to examine the relative characteristics and performance of foreign and domestic banks operating in India. A comparison of their characteristics undoubtedly suggest that foreign banks as a group differ significantly from domestic banks. It was also found that foreign banks enjoyed higher profitability than the domestic banks. The higher profitability of the former was a reflection of their particular operational characteristics, strategies and the favourable attitude of the Government of India and Reserve Bank of India towards foreign banks vis a vis domestic banks.