Is India witnessing an exodus by foreign banks?
Two banks – Citi and FirstRand – have withdrawn or scaled back their operations in the country recently.
Over the years, many prominent banks of foreign origin have gradually retreated from India citing lack of operational bandwidth, stricter compliance requirements and heavy competition from domestic banks.
Are they right? Is our banking landscape not conducive to foreign banks by design? Most importantly, to what extent do we depend on foreign banks' contribution for our economy?