International dimensions of Indian banking

Abstract

During the last few years, Indian banks have shown growing interest in internationalising their business activities. Several new offices have been opened in foreign countries. Funds have been raised and disbursed in terms of foreign currencies. A wide range of international banking services have been offered, and the growing list of customers includes Indians as well as non-Indains abroad. Funds have been provided for trading with or by India, as also for economic development in India and other countries. Funds have been raised and disbursed unilate ally as well as in association with other Indian and non-Indian banks. In this paver ice propose to examine the nature and significance oj the international operations of Indian banks in the furtherance of their business strategies. The paper is broadly divided into four parts. In the first part we shall identify the various forms of the banks' national business and the cumulative effect of the same on the Indian banking system. In the second part we shall examine what has prompted Indian banks to undertake overseas operations and how these fit in with the individual corporate strategies of the banks concerned, In the third part, we shall examina the significance of these move from a national viewpoint Finally, we shall take a took at the likely future developments in the context of foreseeable environmental changes and the areas in which steps might have to be thought of by individual bank managements end by the government and the Reserve Bank for regulation of the banking system.