Top 10 Foreign Banks in India – Strengths, Benefits & Challenges

Name: Investkraft
Address: Office No. 101A, D Mall, Netaji Subhash Place, Delhi, 110034, IN
Telephone: 9797971876

Nov 1st 2025

Finance

Foreign Banks in India play a very important role in offering world-class financial services, trade finance, investment banking, and global connectivity. In this article, we present a list of the top foreign banks operating in India (2025), their strengths, benefits, challenges, and the latest policy updates.

What is a Foreign Bank?

A Foreign Bank in India is a branch or wholly-owned subsidiary of an international bank licensed by the RBI. Here are the key points related to foreign banks:

They operate in India but are headquartered outside India.
They offer services like corporate banking, investment banking, trade finance, retail accounts, credit cards, and digital banking.
Their focus is usually on multinational companies, high-net-worth clients, and urban retail banking.
They follow RBI regulations in India while also being governed by their home country's regulations.
Most foreign banks are concentrated in metros and Tier-1 cities.

List of Top Foreign Banks in India in 2025

The following is the list of top foreign banks in India in 2025:

Foreign Bank	Headquarters (Global)	India Presence	Strengths	Customer Support Number (Customer Care Number)
Standard Chartered Bank	London, UK	Branch network across many cities (100+ branches)	Among the largest foreign banks in India, strong in retail, corporate & international banking	6601 4444 / 3940 4444
HSBC (Hongkong & Shanghai Banking Corporation)	London / Hong Kong	Branches in metros	Strong in trade finance, wealth, global connectivity	1800 266 3456/ 1800 120 4722
DBS Bank	Singapore	Operates a WOS / branch network	Digital-first approach, strong in retail & SME growth	1860 210 3456
Deutsche Bank	Frankfurt, Germany	Presence in major metros	Investment banking, corporate banking, and treasury services	18001236601
BNP Paribas	Paris, France	Branches/presence in financial centres	Corporate banking, treasury, global services	#ERROR!
MUFG Bank	Tokyo, Japan	Limited but strategic presence	Japanese business relations, corporate finance, Asia linkages	1800 1020 878
Barclays Bank	London, UK	Select operations	Corporate & investment banking, capital markets	#ERROR!

Key Updates in 2025-2025 for Foreign Banks in India

The following are some of the key updates regarding foreign banks in India in 2025:

Many foreign banks have consolidated branches, focusing more on digital banking and corporate services.
RBI has encouraged foreign banks to convert to wholly-owned subsidiaries (WOS) for better regulatory oversight.
Stronger push towards green financing and ESG-focused lending.
Expansion of credit card businesses and digital banking apps by DBS, HSBC, and Standard Chartered.
Increased focus on cross-border payments and trade finance due to growing global trade.

Difference Between Foreign Banks, Government Banks, and Private Banks

Let us understand the differences between foreign banks, government banks and private banks:

Feature	Foreign Banks	Government Banks (PSBs)	Private Banks
Ownership	Headquartered outside India	Majority govt-owned	Privately owned
Branch Reach	Limited (mostly metros)	Nationwide	Large, urban + semi-urban
Focus	Corporate clients, high-value retail	Financial inclusion, rural & urban	Retail, corporate, tech-driven
Digital Adoption	High, global-standard	Improving, moderate	Very high
Target Audience	MNCs, HNIs, global businesses	Rural, semi-urban, all citizens	Urban middle-class, corporates

Benefits of Banking with Foreign Banks

The following are some of the major benefits of banking with foreign banks in India:

World-Class Services: Premium banking, investment, and wealth management.
Global Connectivity: Easy international transfers and corporate banking.
Digital Advantage: Advanced digital and mobile banking platforms.
Corporate Strength: Expertise in trade finance, treasury, and MNC relationships.
Premium Products: Popular for innovative retail banking products.

Challenges and Risks in Foreign Banks

The following are some of the challenges and risks associated with foreign banks in India:

Limited Branch Network: Usually in metros and Tier-1 cities only.
Focus on High-End Clients: Less emphasis on rural or financial inclusion.
Regulatory Compliance: Dual regulation (RBI + home country regulators).
Product Costing: Some products (like credit cards, wealth services and others) may carry higher charges.

Conclusion

Foreign Banks in India bring global expertise, technology, and world-class services to Indian customers. In 2025, banks like Citibank, HSBC, Standard Chartered, Deutsche Bank, and DBS Bank continue to lead in corporate and premium retail banking. For customers who need international connectivity, premium services, and advanced digital banking, foreign banks remain the top choice in India.

Frequently Asked Questions

How many foreign banks operate in India?

As of 2025, there are 40+ foreign banks with branches or subsidiaries in India.

Are foreign banks safe in India?

Yes. They are regulated by the RBI in India and also by their home country regulators. Deposits in Indian branches are insured under DICGC, like other banks.

Do foreign banks offer savings accounts for individuals?

Yes. Banks like HSBC, Citibank, Standard Chartered, and DBS provide savings accounts, credit cards, and personal loans for retail customers.

What services are foreign banks best known for?

They are strong in trade finance, investment banking, corporate lending, credit cards, and NRI/wealth management services.

Can foreign banks compete with Indian banks in rural areas?

Not directly. Foreign banks are mostly concentrated in metros and Tier-1 cities, unlike government or private banks, which have a large rural/semi-urban presence.

Which is the largest foreign bank in India?

Standard Chartered Bank and HSBC are among the largest in terms of branches, assets, and customer base in India.

Author: Diwakar Kumar Singh

Diwakar Kumar Singh is an accomplished content creator with over 6 years of experience in crafting both long-form and short-form content.

A gold medalist in MBA (Marketing) from IMT and a qualified petroleum engineer, Diwakar brings a results-driven mindset to his work. His passion for writing enables him to produce compelling and engaging content that resonates with diverse audiences.