Inflow of FDI in Banking SectorAuthor: Deepika Madana, Renu Tyagib aAssistant Professor, TCM College of Engineering, Gannaur Email: dipika.madaan@gmail.com bAssistant Professor, TCM College of Engineering, Gannaur Email: tyagi.renu01@gmail.com
Abstract:
Foreign direct investment is the investment made by a foreign individual or company in
productive capacity of another country. It is the movement of capital across national
frontiers in a manner that grants the investor to control over the acquired asset.
Inflow of Foreign investment is the main economic activity for the development of country.
There are two basic types of foreign investment.
1.) Foreign direct investment
2.) Foreign portfolio investment
This abstract is based on the foreign direct investment in banking industry in India. Banking
sector is the main sector of a country. Because over all development of the country is fully
dependent on the growth of banking sector. Banking sector creates the infrastructure
development as well as economical development.
The performance of foreign banks in India and compare the foreign bank to the Indian
domestic banks whether public banks or private banks. There are various angles in which
analyze the performance of foreign banks like according to the investment, growth, market
share, profitability etc. On the basis of all these angles researcher is analyzing the
performance of foreign banks in India. The banking industry in India seems to be unaffected
from the global financial crises which started from U.S in the last quarter of 2008. Despite
the fallout and nationalization of banks across developed economies, banks in India seems to
be on the strong fundamental base and seems to be well insulated from the financial
turbulence emerging from the western economies. The Indian banking industry is well
placed as compare to their banking industries western counterparts which are depending
upon government bailout and stimulus packages.
The strong economic growth in the past, low defaulter ratio, absence of complex financial
products, regular intervention by central bank, proactive adjustment of monetary policy and
so called close banking culture have favored the banking industry in India in recent g
Keywords:Foreign direct investment, Indian banking industry, Foreign portfolio
investment
DOI:
International Journal of Trade & Commerce (Vol: 1 Issue:1)
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