Bank of America, Chase and Bank of New York are the top five banks to open branch in India in 2019, according to a new report from the Financial Services Sector Authority.
The banks, which together account for about 35% of the country’s commercial banking activity, have attracted some of the largest banks in the world, including UBS and Goldman Sachs.
Gates Financial Services, the only commercial bank in India that is a publicly traded company, is set to open branches in the country by 2020.
“In India, commercial banking remains one of the few areas where there is a lot of scope to build new businesses, especially in rural areas,” said Praveen Kaur, chief executive officer of the FSEA.
Kaur added that commercial banking in India “isn’t a new area for banks to expand.”
The FSEI report notes that the sector accounts for more than 10% of India’s GDP and employs nearly 3.2 million people, nearly half of them in the commercial banking sector.
It also notes that commercial banks are currently operating in a competitive environment.
India is the second largest bank market in the Americas, after the United States, the report says.
With more than $10 trillion of credit exposure, commercial banks account for around 35% (USD) of all commercial loans in India, according a recent McKinsey Global Institute report.
In India today, commercial bank branches account for just under half of the total commercial banking business.
More: India’s top five commercial banks in 2019 (PDF)Source: Financial Services Enterprise Association/FSEA/Associated Press