Foreign banks cut India footprint as global realignment continues, shows RBI report

Reserve Bank of India

Foreign banks slightly reduced their presence in India in 2024-25 as part of ongoing changes in their global business strategies, according to the Reserve Bank of India’s (RBI) Trend and Progress of Banking in India 2024-25 report.

At the same time, Indian banks continued to maintain a stable overseas presence, underscoring a contrast between global lenders trimming operations in India and domestic banks expanding or sustaining their international footprint.

As of end-March 2025, the number of foreign banks operating in India through branches or wholly-owned subsidiary mode declined to 44, following the exit of one bank during the year, the RBI report said.

The number of branches operated by foreign banks also fell to 755, down from 780 a year ago, extending a gradual contraction seen over the past few years.

Data showed that foreign banks operating through branch or wholly-owned subsidiary mode stood at 45 in 2024, with 780 branches, compared with 44 banks and 782 branches in 2023. The branch count has steadily declined from 861 in 2022.

The RBI noted that changes in the branch network of foreign banks largely reflect their continuous re-alignment of global business strategies and business value optimisation.

However, the number of foreign banks having representative offices in India remained unchanged at 31.

In 2025, India's banking sector has seen some large deals such as Japan's MUFG picking up stake ‌in Shriram Finance, Dubai-based bank Emirates NBD ‌buying stake in RBL Bank, and Japan's Sumitomo Mitsui Banking Corporation (SMBC) buying stake in Yes Bank.

Further, Indian banks continued to maintain their geographical presence overseas to support international operations. Public sector banks retained a wider overseas footprint compared with private sector banks, operating through branches, subsidiaries, representative offices and joint ventures, the RBI said.