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Multinational Corporations

'Multinational Corporation - MNC' A corporation that has its facilities and other assets in
at least one country other than its home country. Such companies have offices and/or factories
in different countries and usually have a centralized head office where they co-ordinate global
management.

Apart from playing an important role in globalisation and international relations, these
multinational companies even have notable influence on a country's economy (both home and
host)

as

well

as

the

world

economy.

As far as India is concerned, a number of multinational companies have shown interest in the
Indian market. It is obvious that foreign companies come and settle in India to earn profit. As
India has a wide market for different and new goods and services due to its increasing
population and varying consumer taste, MNCs find it as a resourceful nation. Besides that,
Indias foreign directive policies, labour competitive market, market competition and macroeconomic stability are some of the key factors that magnetise MNCs towards India.
1 | MNCs IN BANKING IN INDIA

In turn, India also derives a lot of benefits from MNCs such as higher level of investment,
reduction in technological gap, optimum utilization of natural resources, reduction in foreign
exchange gap and boost to basic economic structure. But roses do not come without thorns.
So there are certain disadvantages of having MNCs in a developing country like India like
competition to SMSI, increased pollution and environmental hazards, improper diffusion of
profits and Forex imbalance, slow decision making and sometimes economic distress. But
these dont overcome the gains of having MNCs.
An enterprise operating in several countries but managed from one (home) country.
Generally, any company or group that derives a quarter of its revenue from operations outside
of its home country is considered a multinational corporation.
There are four categories of multinational corporations: (1) a multinational, decentralized
corporation with strong home country presence, (2) a global, centralized corporation that
acquires cost

advantage through

centralized production wherever cheaper resources are

available, (3) an international company that builds on the parent corporation's technology or
R&D, or (4) a transnational enterprise that combines the previous three approaches.
According to UN data, some 35,000 companies have direct investment in foreign countries,
and

the

largest

100

of

them control about

40 percent of

world trade.

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Increased competition from large foreign lenders threatens domestic banks


Policymakers convening in Washington, D.C. this week for the joint meeting of the World
Bank and International Monetary Fund will begin to implement the global agenda launched at
the United Nations conference on development financing held in Monterrey, Mexico in
March 2002. In recent years, declining official aid, booming foreign direct investment, and
greater capital market integration have transformed the way low- and middle-income
countries finance development. As a result, developing countries must now more than ever
create an environment that effectively mobilizes and harnesses foreign and domestic financial
resources, and the worlds policymakers must find a way to structure financial systems in
order to meet the UN Millennium Declaration goal of halving world poverty by 2015.
In a recently released report, the World Bank (2002) argues that changing the rules to allow
greater participation of multinational banks (MNBs) in developing countries will result in the
efficiency and stability needed to attract growing levels of private capital for development.
While embracing investment inflows is an uncontroversial proposal, recommendations for
increased international financial competition deserve careful scrutiny. Economists currently
have only a limited understanding of the consequences for the real economy of increased
foreign penetration of emerging financial markets. The existing evidence, however, does not
tend to support the hope that increased competition from MNBs will make domestic banks
more efficient or banking systems more stable. Moreover, the research shows that increased
foreign competition lowers the supply of credit-especially to business start-ups, small- and
medium-size enterprises, and low- and middle-income consumers-and increases the
possibility for financial instability.
Why

do

banks

go

global?

Multinational banks (MNBs), by definition, are those that physically operate in more than
one country. For instance, Citibank operates offices in more than 90 countries around the
world. In contrast, international banks engage in cross-border operations and do not set up
operations in other countries. A Bank of America loan to a bank in Poland is considered
international banking.
MNBs have experienced rapid growth in the past few years (see Table 1). Access to new
markets in Central and Eastern Europe and financial deregulation elsewhere has helped to
accelerate the growth of MNB operations. The most rapid growth of MNB loans has been in
3 | MNCs IN BANKING IN INDIA

Eastern Europe, thanks to the opening of the former East Bloc countries. Latin America has
also experienced a rapid increase in MNB loans over the years, following financial
deregulation and bank privatizations. As a result of deregulation and growing financial
integration, cross-border mergers and takeovers of banks grew from 320 in the 1980s to 2,000
in the 1990s (World Bank 2002). By the end of the 1990s, foreign banks controlled more than
half of the banking system in many countries in Eastern Europe and Latin America
(Mathieson and Roldos 2001).
The impressive growth of MNB loans does not reflect equally fast-growing capital inflows.
MNBs basically work like this-they collect local currency, combine that with funds borrowed
from overseas, and then lend that money domestically. Hence, MNBs are small net importers
of capital, otherwise operating in a manner similar to domestic banks. Yet, even though
MNBs look like domestic banks, their entry and operations are subject to international trade
agreements, such as the General Agreement on Trade in Services (GATS) at the World Trade
Organization (WTO).
MNBs tend to expand their global operations for two reasons. First, MNBs follow their
clients. Since MNBs operate in a wide array of countries and regions, multinational
corporations (MNCs) become their natural clients. When MNCs establish new operations,
MNBs often follow. Second, the concentration on a small number of large clients in
combination with superior technology and know-how makes MNB operations very
profitable. For instance, even in the midst of high inflation and economic turmoil in Brazil in
1983, MNBs operated very profitably, with Citibank earning 20% of its worldwide income in
Brazil that year. In Korea, MNBs averaged 75-80% returns on equity, whereas domestic
banks earned only an average of 15-20% between 1972 and 1979. In 1991, MNB profits in
Korea rose by 37% compared to 12.9% for domestic banks, leaving MNBs with a share of
68% of all net bank earnings, up from 61% in 1990.
Less-industrialized economies also have become more open to MNBs, often because of a
need for international capital. MNBs are, after all, a form of capital inflow and hence help to
finance current account deficits. Furthermore, countries that have undergone financial crises
often look to stabilize their banks with the help of international investors by allowing MNBs
to quickly expand their operations. In Korea and Thailand, MNB loans dipped briefly after
the financial crisis hit, but within a year recovered and even accelerated (see Figure 1). A
similar trend was also observed in Mexico, where MNB loans more than doubled from $1.8
4 | MNCs IN BANKING IN INDIA

billion at the beginning of the peso crisis in December 1994 to $4.3 billion in December
1995, only to jump to $8.0 billion by December 1996 (Figure 1). As investment rules in the
North American Free Trade Agreement took effect, MNB loans in Mexico soared to over $95
billion. The need to find investors for troubled banks coupled with the fact that, after a rapid
devaluation, domestic assets can be bought at bargain-basement prices helps explain the
increase in MNB loans after a crisis.

In their operations, MNBs focus on a select range of activities for a small circle of clients.
MNBs tend to provide services that other banks are either less familiar with or do not offer,
such as foreign currency loans, acceptances and guarantees related to international trade, or
syndicated loans. As a result, MNB clients are usually MNCs or large domestic corporations
engaged in international transactions. In addition, MNBs also provide services for highincome earners, or what is referred to as high net-worth individuals.
5 | MNCs IN BANKING IN INDIA

MNBs shrink supplies of external financing and destabilize host economies


Though often heralded as a leading rationale for the role of MNBs in developing countries,
the retail banking services of most benefit to domestic consumers, such as small checking and
savings accounts, mortgages, or small business loans, are rarely emphasized by MNBs.
Even though MNBs largely serve a small, wealthy circle of clients, the logic behind greater
MNB entry is that domestic banks will be forced to improve their operations in order to
remain competitive. According to this logic, the resulting increase in the efficiency of
domestic banks should increase the available amount of credit and improve the stability of
local banks.
In practice, however, research finds that increased competition from MNBs leads domestic
banks to reduce their loan exposure. Prime examples of this connection between more MNBs
and less credit can be found in the economies of Central and Eastern Europe. In these areas
MNBs have quickly gained significant market shares, while the credit supply, especially to
smaller companies, has been stagnant or declining. The same result also holds true for a broad
sample of economies in other parts of the world.
The reason that domestic banks lower their credit exposure is because MNBs cherry pick
the best customers, leaving domestic banks with borrowers of lesser quality. As a result, both
the costs and credit risks at domestic banks increase, while low-risk, low-cost customers
move to MNBs.
This puts domestic banks in a bind. Thanks to increased international competition, the
domestic banks inevitably need more capital to fund new technologies, to train existing
workers, and to hire new banking experts. Greater international competition also means that
domestic banks lose lending opportunities to MNCs and large domestic corporations the
most secure stream of income from loans thereby making it harder for domestic banks to
get the capital necessary to compete with MNBs.
Initially, the entry of MNBs leads domestic banks to reduce lending in an effort to shore up
their capital-to-asset ratio. Since the most stable banks are the ones that do not lend any
money, reduced lending also increases the stability of local banks, but only superficially. This
appearance of stability is misleading if domestic banks were to increase lending, then the
stability of the banking sector would decline since lending would go to riskier borrowers. In
6 | MNCs IN BANKING IN INDIA

reality, little has changed in that economys banking technology or expertise that would allow
domestic banks to better evaluate credit risks, primarily because the domestic banks still do
not have access to the funds needed for these types of improvements. Eventually, in order to
survive, domestic banks must race to capture the markets for domestic savings and credit
ignored by MNBs, despite insufficient capital to expand lending. Thus, banks that shouldnt
be lending more will. In the end, domestic banks may look more stable, but this is due to
temporarily lower loan exposure, not efficiency gains from greater competition. Where
technological progress has been made, it is often not directly relevant for the stability of the
banking system (e.g., ATMs), or it is too little too late. As a result, many domestic banks
either merge or are acquired by MNBs, thereby raising the foreign presence even further.
Another destabilizing impact from declining loans results from the spill-over into the nonfinancial sector. Businesses need bank credit for investments. If loans are reduced due to
increased international competition, firms will not have enough funds for their investments.
As companies become unable to invest in new technologies, their ability to compete will
decline, thereby weakening the non-financial sector and eventually the financial sector.

7 | MNCs IN BANKING IN INDIA

Characteristic feature of MNC:


1.WORLD

WIDE

OPERATION

The multinational companies extend their operation to two or more countries.They establish
parent office in one country and extend branches ,subsidiary and affiliation to other countries.
2.CREATE

MAXIMUM

OPERATION

The multinational companies are extended to many countries.People can grasp the
opportunity
People can join the multinational companies according to their capabilities. Manpower can
be
well

utilized

in

the

multinational

3.ADVANCED

companies.
TECHNOLOGY

Multinational companies invest a huge amount of money on research and development of


latest
technology. Therefore transfer advanced technology to developing countries through
subsidiaries
and

branches,

4.HIGH

EFFICIENCY

Advanced technology are used are for multinational companies. So, manpower can give well
training
which increase efficiency of manpower. Due to this cause, the multinational companies can
provide
large

volume

5.MONOPOLISTIC

of

quality

products

at

cheaper

price.

MARKET:

Generally, multinational companies supply large quantities of quality products and services
in the international Page on Market they create a separate brand name and capture a large
area

of

foreign market. Sometimes they even control a huge market through trade marks and patent
right.
8 | MNCs IN BANKING IN INDIA

6.PRODUCT/SERVICE

ORGANISATION:

A multinational company is based on product/service which produces a mass production of


varieties of goods and services. The company consists own trade mark,patent right ,copy right
and
technology for production and distribution of such goods in the international market.
7.OWNERSHIP

AND

CONTROL:

The ownership of such company is shared by both parent company and branch companies as
per

their

capital

investment. However parent company manages and control the operation of its branches and
subsidiary through trade mark, technology, and patent right.

9 | MNCs IN BANKING IN INDIA

STUDY OF A FEW MNC BANKS IN INDIA:


MNC banks in india:
1. ABN-AMRO Bank N.V.

2. Abu Dhabi Commercial Bank Ltd.

3. American Express Bank Ltd.

4. Barclays Bank PLC

5. BNP Paribas

6. Citibank N.A.

7. DBS Bank Ltd

8. Deutsche Bank AG

9. HSBC Ltd.

10. Standard Chartered Bank

11. State Bank of Mauritius Ltd.

12. ICICI Bank

10 | MNCs IN BANKING IN INDIA

Barclays bank:

From funding the world's first industrial steam railway in 1819, to unveiling the world's first
automated teller machine in 1967, Barclays has had a string of firsts to it's credit in its more
than 300 years of history.
In India, Barclays plc is one of the largest UK employers with over 12,000 employees spread
across it's banking, technology and shared services operations.
Barclays Bank plc, which has had a branch presence in India since 1990, has achieved market
leading positions in it's chosen lines of business that include Corporate Banking &
Investment Banking. Barclays has been a Top 5 arranger of domestic debt since 2010 and a
Top 3 arranger of offshore bonds in 2012. The M&A advisory business ranked at No. 4 in
2012. Barclays' commitment to growing it's India franchise is best demonstrated by the over
$800million of capital it has invested in the bank in India, among the largest capital
commitments by any foreign bank.
Wealth & Investment Management, which operates through Barclays Securities &
Investments Pvt Ltd (BSIPL), has attained a leading position within just five years of being
set up and has been voted the Best Private Bank in India by The Asset for three years in a
row. The Equities business, which also operates through BSIPL, was set up in July 2011 and
within just two years, has established itself as a highly respected business in the market.

11 | MNCs IN BANKING IN INDIA

Through it's subsidiaries - Barclays Shared Services and Barclays Technology Centre India the Barclays Group employs high-quality talent that supports the bank's global operations and
technology development.

Commercial Banking
All the customers of Barclays Commercial Banking have a dedicated Relationship Manager
to help them manage their funds in the best possible way. The Relationship Managers have
specific industry expertise and experience to understand the financial requirements of the
clients; they also provide access to Sales Financing Managers and International Trade
Managers as required. Some of the commercial banking products of Barclays include trade &
finance, deposits, treasury solutions, payment & cash management, loans and financing.

Barclays Bank Loans


Barclays Bank India provides various types of loans to customers to take care of their
financial needs. The bank provides home loans, business loans and loans against property
based on requirements. Barclay's business loans in India can be taken by partnership firms,
self employed individuals, sole proprietorship firms and private limited companies. All the
loans have easy repayment options making it easy for everyone who take the loan to pay back
the

money.

Barclays NRI Banking


Barclays Bank India has a wide range of financial products that are specifically designed
keeping in mind the requirement of NRI clients. Some of the facilities available to NRI
clients include NRI Home Loans, Premier NRI, Non Resident External (NRE) Savings
Account,

Investments

and

Foreign

Currency

Non

Resident

(FCNR)

Deposits.

12 | MNCs IN BANKING IN INDIA

Barclays Credit Card


Barclays offers a range of credit cards that makes the whole experience of shopping a very
hassle free one. Some of the special features of Barclay's credit card consist of the freedom to
decide on the minimum amount that the customer would like to pay, assign credit limits and
choose when to receive the credit card statements. All credit cards have the highest level of
protection

against

frauds.

Some

of

the

TimesofMoney

Barclaycard Gold

Barclaycard Platinum

Yatra Barclaycard Platinum

Times Card from Barclaycard

Barclays Premier League Barclaycard

cards

offered

by

the

bank

include:

13 | MNCs IN BANKING IN INDIA

Standard chartered bank:

Standard Chartered PLC is a British multinational banking and financial services company
headquartered in London. It operates a network of more than 1,200 branches and outlets
(including subsidiaries, associates and joint ventures) across more than 70 countries and
employs around 87,000 people. It is a universal bank with operations in consumer, corporate
and institutional banking, and treasury services. Despite its UK base, it does not
conduct retail banking in the UK, and around 90% of its profits come fromAsia, Africa and
the Middle East.
Standard Chartered has a primary listing on the London Stock Exchange and is a constituent
of the FTSE 100 Index. It had a market capitalisation of approximately 15 billion as of 20
January 2016, the 28th-largest of any company with a primary listing on the London Stock
Exchange.[3] It has secondary listings on the Hong Kong Stock Exchange and the National
Stock Exchange of India. Its largest shareholder is the Government of Singaporeowned Temasek Holdings.

14 | MNCs IN BANKING IN INDIA

ABOUT Standard Chartered in India:


We've been in India for over 150 years
We're India's largest international bank with 99 branches in 42 cities, and we've been
operating here since 1858.
Our Customers and Clients Come First
We use our global capabilities and deep local knowledge in India to provide a wide-range of
products and services to meet the needs of our individual and business customers.
We build our products and services around you and have a number of commitments to help
ensure that our customer have the best possible experience with us. View our service
commitments.
Our Sponsorships:
We're proud sponsors of:

The Standard Chartered Mumbai Marathon - title sponsor for the last ten years

Asia Cup - official partner of the bi-annual cricket tournament

15 | MNCs IN BANKING IN INDIA

The Economic Times Awards for Corporate Excellence - title sponsor from 2012 to
2016

Liverpool Football Club - our four year sponsorship started in June 2012.
Our Awards:Our products and services are often recognised by industry leaders. Here are a
few of our recent awards:

Best Foreign Bank 2012 - Bloomberg Financial Leadership Awards

Financial Advisor of the Year Award 2012 - UTI CNBC

Best Private Bank in India by the Asian Private Banker at the Awards for Distinction
2012.
Our Listings and Subsidiaries:Standard Chartered PLC, our UK based parent, became the
first foreign company to list in India through the issuance of Indian Depository Receipts in
June

2010.

We also have a number of subsidiaries operating in India:

Standard Chartered Securities (India) Ltd, the vehicle for the equities business

Standard Chartered Private Equity Advisory (India) Private Limited

Standard Chartered Investments and Loans (India) Limited

Standard Chartered Finance limited and SCOPE International.

16 | MNCs IN BANKING IN INDIA

ICICI

Bank (Industrial

Credit

and

an Indian multinational banking and financial

Investment

Corporation

services company

of

India)

is

headquartered

in Mumbai, Maharashtra, India, with its registered office in Vadodara. In 2014, it was the
second largest bank in India in terms of assets and third in term of market capitalisation. It
offers a wide range of banking products and financial services for corporate and retail
customers through a variety of delivery channels and specialised subsidiaries in the areas
of investment banking, life, non-life insurance, venture capital and asset management. The
bank has a network of 4,183 branches[4] and 13,498 ATMs[5] in India, and has a presence in 17
countries including India.[6]
ICICI Bank is one of the Big Four banks of India, along with State Bank of India, Bank of
Baroda and Punjab National Bank.[7] The bank has subsidiaries in the United Kingdom and
Canada; branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar, Oman,
Dubai International Finance Centre, China[8] and South Africa; [9] and representative offices in
United Arab Emirates, Bangladesh, Malaysia and Indonesia. The company's UK subsidiary
has also established branches in Belgium and Germany.

History
ICICI Bank was established by the Industrial Credit and Investment Corporation of
India (ICICI) , an Indian financial institution, as a wholly owned subsidiary in 1994. The
parent company was formed in 1955 as a joint-venture of the World Bank, India's publicsector banks and public-sector insurance companies to provide project financing to Indian
industry.[11][12] The bank was founded as the Industrial Credit and Investment Corporation of
India Bank, before it changed its name to the abbreviated ICICI Bank. The parent company
was later merged with the bank.
ICICI Bank launched internet banking operations in 1998.[13]

17 | MNCs IN BANKING IN INDIA

ICICI's shareholding in ICICI Bank was reduced to 46 percent, through a public offering of
shares in India in 1998, followed by an equity offering in the form of American Depositary
Receipts on the NYSE in 2000.[14] ICICI Bank acquired the Bank of Madura Limited in an allstock deal in 2001 and sold additional stakes to institutional investors during 2001-02.[15]
In the 1990s, ICICI transformed its business from a development financial institution offering
only project finance to a diversified financial services group, offering a wide variety of
products and services, both directly and through a number of subsidiaries and affiliates like
ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial
institution from non-Japan Asia to be listed on the NYSE.[16]
In 2000, ICICI Bank became the first Indian bank to list on the New York Stock Exchange
with its five million American depository shares issue generating a demand book 13 times the
offer size.[14]
In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of
ICICI and two of its wholly owned retail finance subsidiaries, ICICI Personal Financial
Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was
approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of
Gujarat at Ahmedabad in March 2002 and by the High Court of Judicature at Mumbai and the
Reserve Bank of India in April 2002.[17]
In 2008, following the 2008 financial crisis, customers rushed to ICICI ATMs and branches in
some locations due to rumours of adverse financial position of ICICI Bank. The Reserve
Bank of India issued a clarification on the financial strength of ICICI Bank to dispel the
rumours.[18]

Role in Indian financial infrastructure


18 | MNCs IN BANKING IN INDIA

The bank has contributed to the set-up of a number of Indian institutions to establish financial
infrastructure in the country over the years:

National Stock Exchange - The National Stock Exchange was promoted by India's
leading financial institutions (including ICICI Ltd.) in 1992 on behalf of the Government
of India with the objective of establishing a nationwide trading facility for equities, debt
instruments and hybrids, by ensuring equal access to investors all over the country
through an appropriate communication network.[26]

Credit Rating Information Services of India Limited (CRISIL) - In 1987, ICICI Ltd
along with UTI set up CRISIL as India's first professional credit rating agency. CRISIL
offers a comprehensive range of integrated products and service offerings which include
credit ratings, capital market information, industry analysis and detailed reports.[27]

National Commodities and Derivatives Exchange Limited - NCDEX is an online


multi-commodity exchange, set up in 2003, by ICICI Bank Ltd, LIC, NABARD,
NSE, Canara Bank, CRISIL, Goldman Sachs, Indian Farmers Fertiliser Cooperative
Limited (IFFCO) and Punjab National Bank.[28]

Financial Innovation Network and Operations Pvt Ltd. - ICICI Bank has facilitated
setting up of "FINO Cross Link to Case Link Study" in 2006, as a company that would
provide

technology

solutions

and underbanked population

of

and
the

services
country.

to
Using

reach

the

technologies

underserved
like smart

cards, biometrics and a basket of support services, FINO enables financial institutions to
conceptualise, develop and operationalise projects to support sector initiatives
in microfinance and livelihoods.[29]

Entrepreneurship Development Institute of India - Entrepreneurship Development


Institute of India (EDII), an autonomous body and not-for-profit society, was set up in
1983, by the erstwhile apex financial institutions like IDBI, ICICI, IFCI and SBI with the
support of the Government of Gujarat as a national resource organisation committed to
entrepreneurship development, education, training and research.

19 | MNCs IN BANKING IN INDIA

Products
Extra home loans
ICICI Bank Extraa Home Loans are 'mortgage-guarantee' backed loans for retail customers
who aspire to purchase their first homes in the affordable housing segment. This was
introduced in August 2015 in association with India Mortgage Guarantee Corporation
(IMGC). IMGC is a joint venture between National Housing Bank (NHB), an RBI subsidiary
which regulates Home Finance Companies in India; NYSE-listed Genworth Financial Inc., a
Fortune 500 company; International Finance Corporation (IFC) and Asian Development Bank
(ADB).[35]
Smart Vault
Smart Vault are fully automated lockers available 24x7, including weekends and post
banking hours were launched in August 2015. The Smart Vault uses robotic technology to
access the lockers from the safe vault conveniently at any time of their preference in total
privacy, without any intervention of the branch staff. [36]
Saral Loans
In August 2015, ICICI Bank introduced Saral-Rural Housing Loan. Applicants from rural
areas including women borrowers as well as seekers from weaker sections can now avail
home loans at the ICICI Bank Base Rate (I-Base) which is currently at 9.70%. An eligible
borrower can take up to Rs.15 lac under the ICICI Bank Saral-Rural Housing Loan.
ICICI Bank Unifare Bangalore Metro Card
ICICI Bank and Bangalore Metro Rail Corporation Limited (BMRCL) in April 2015,
announced the launch of the ICICI Bank Unifare Bangalore Metro Card. This card offers
the commuters dual benefits of an ICICI Bank credit or debit card and BMRCLs smart card,
called Namma Metro Smart Card. This is a cobranded card in association with MasterCard.

20 | MNCs IN BANKING IN INDIA

'Touch n Remit' facility for NRIs in Kingdom of Bahrain


In March 2015, ICICI Bank tied up with SADAD Electronic Payments WLL to offer
remittance service for NRIs based in Bahrain, enabling them to transfer monies instantly to
India from the latters kiosks spread across the Kingdom of Bahrain. This facility has been
named as Touch n Remit.
ICICI Bank Ltd launches 'Video Banking' for NRI
In February 2015, ICICI Bank announced the launch of 'Video Banking' for all its NRI (Non
Resident Indian) customers. Using this service, the customers can now connect with a
customer care representative over a video call, round-the-clock, on all days from anywhere
using their smart phone.
Pockets by ICICI Bank
In February 2015, ICICI Bank Re-Launched POCKETS, now working as a "Digital wallet"
for everyone (Android OS users only). The Wallet be can be opened by anyone and can
conduct transactions like recharge, shopping, transfer money using the virtual visa card which
is issued when signing up for the wallet.

Go Green Initiative
The Go Green Initiative is an organisation wide initiative that moves beyond moving people,
processes and customers to cost effective automated channels to build awareness and
consciousness of our environment, our nation and our society.[47]
Objective
ICICI Bank's Green initiative is to make healthy environment in the organisation i.e.; to
create intrapersonal skills amongs the customer and understanding between employees of the
organisation.
Broad objectives of the ICICI are:

21 | MNCs IN BANKING IN INDIA

1. to assist in the creation, expansion and modernisation of private concerns;


2. to encourage the participation of internal and external capital in the private concerns;
3. to encourage private ownership of industrial investment.
4. not giving NOC after settlement of loans

22 | MNCs IN BANKING IN INDIA

HSBC bank:

HSBCs origins in India date back to 1853 when the Mercantile Bank of India was
established in Mumbai. The bank has grown steadily and now offers products and services to
corporate and commercial banking clients and retail customers.

The Mercantile Bank of India, London and China was founded in Bombay (now Mumbai).
By 1855, the Mercantile Bank had opened offices in London, Madras (Chennai), Colombo,
Kandy, Calcutta (Kolkata), Singapore, Hong Kong, Canton (Guangzhou) and Shanghai. In
1950 it moved into its new head office building at Flora Fountain in Mumbai.
The Mercantile Bank was bought in 1959 by The Hongkong and Shanghai Banking
Corporation Limited. Founded in 1865 to serve the needs of the merchants of the China coast
and finance the growing trade between China, Europe and the US, HSBC has been an
international bank from its earliest days.
HSBC in India has been active in the development of the Indian banking industry - even
giving India its first ATM in 1987.

23 | MNCs IN BANKING IN INDIA

HSBC Group members in India:

The Hongkong and Shanghai Banking Corporation Limited

HSBC Asset Management (India) Private Limited

HSBC Electronic Data Processing (India) Private Limited

HSBC Professional Services (India) Private Limited

HSBC Securities and Capital Markets (India) Private Limited

HSBC Software Development (India) Private Limited

HSBC InvestDirect (India) Limited

HSBC InvestDirect Securities (India) Private Limited (formerly known as HSBC


InvestDirect Securities (India) Limited)

HSBC InvestDirect Financial Service (India) Limited (formerly known as Investsmart


Financial Services Limited) HSBC InvestDirect Sales & Marketing (India) Limited

HSBC Agency (India) Private Limited

HSBC Global Shared Services (India) Private Limited

Businesses:
HSBC serves its customers in India through our four global businesses:

Retail Banking and Wealth Management: The Bank offers a wide range of services
and products to resident as well as non-resident Indian customers based in various
countries across the globe.

Commercial Banking: Commercial Banking (CMB) provides services to business


and corporate clients. Our services include business accounts, payments and cash
management solutions, trade services, and a range of borrowing solutions.

24 | MNCs IN BANKING IN INDIA

Global Private Banking: HSBC Private Banking offers a range of products and
services including advisory and wealth management products and services for high net
worth clients and their families.

Global Banking and Markets: Global Banking and Markets business provides
financial products and services for corporate and institutional clients. This includes
transaction banking, treasury services, investment banking, advisory, capital markets,
foreign exchange, fixed income and derivatives.

Other entities:

Global Asset Management: HSBC Asset Management (India) Private Limited,


investment manager to HSBC Mutual Fund, offers a flexible product range to individual
and institutional investors including fixed income/pension mandates for large institutional
clients.

Global Service Delivery: Global Service Delivery in India has more than 20,000
employees and operates out of 11 Group Service Centres (GSCs). There are three centres
each in Bangalore and Hyderabad; while Gurgaon, Kolkata, Mumbai, Chennai and Vizag
have one centre each.

HSBC Securities and Capital Markets (India) Private Limited: HSBC Securities
and Capital Markets (India) Private Limited offers services in Investment Banking (IB),
Project and Export Finance, Equities research and broking. The IB business includes
mergers and acquisition advisory services and equity and debt origination. Project and
Export Finance services are provided to governments, large corporates and top-tier banks.
Equities research and broking primarily cater to the institutional client base which includes
foreign institutional investors, local institutions, mutual funds, insurance companies, and
select high net worth and corporate clients.

Global Software Development: HSBC Global Software Delivery in India (registered


entity - HSBC Software Development (India) Private Limited (HSDI)) is spread across
five locations in Pune and Hyderabad. It supports the Groups IT requirements worldwide
through development, maintenance and diverse banking applications.

Audit Services: HSBC Professional Services (India) Private Limited (HPSI) provides
internal audit services to global businesses and global functions across the HSBC Group
and is also involved in regional audit work in Asia-Pacific.
25 | MNCs IN BANKING IN INDIA

26 | MNCs IN BANKING IN INDIA

CITIBANK:

Industry

Banking
Financial services

Founded

1902

Headquarters

Mumbai, Maharashtra, India

Key people

Pramit
(Citi

Jhaveri
Country

Officer,

Kartik

India)
Kaushik

Country Business Manager, Global Consumer


Group, Citi India
Products

Credit

Cards

Debit

Cards

Loans
Investments
Assurance/Insurance
NRI Banking,Private Banking
Owner

Citigroup

Number of employees

7,500

Citibank India is an Indian private sector bank headquartered in Mumbai, Maharashtra. It is


a subsidiary of Citigroup, a multinational financial services corporation headquartered
27 | MNCs IN BANKING IN INDIA

in New York City, United States. The Indian Headquarters are at Bandra Kurla Complex, a
hub for multinational corporations in Mumbai.
History
Established

in

1902

in Calcutta (Kolkata), Citibank has

long

history

in India.

Currently, Citigroup, the owner of Citibank India, is the largest foreign direct investor
in financial services in India with a total capital commitment of approximately US$4 Billion
in its onshore banking and financial services business and its principal and alternate
investment programmes.
It operates 44 full-service Citibank branches in 31 cities and over 700 ATMs across the
country.
Citibank is an employer of about 7,500 people.
Products and services
Citi offers consumers and institutions a broad range of financial products and services,
including consumer

banking and credit,corporate and investment

banking, securities

brokerage, and wealth management.


Citi's

franchise

in

India

includes

businesses

such

as equity

brokerage, equities

distribution, private banking (Citi Private Bank) and alternate investments and private
equity (CVCI).

Citibank in India:
Committed to India for more than 110 years, Citi takes pride in being a premier locallyembedded financial institution backed by an unmatched international network. Citi's presence
in India spans 42 Citibank branches across 30 cities and more than 700 ATMs. With capital
invested of more than US$4 billion, Citi is the single largest foreign direct investor in the
financial services industry in India and offers consumers and institutions a broad range of
financial products and services, including consumer banking and credit, corporate and
investment banking, securities brokerage and wealth management.
28 | MNCs IN BANKING IN INDIA

Citi India's products and services are organized under two major segments:
Citi Institutional Clients Group (ICG) and Citi Global Consumer Banking (GCB). The ICG
serves Citi's best-in-class products, services and execution through four major client groups:
Corporate and Investment Banking, Citi Markets, Citi Transaction Services, Citi Private
Bank.
Under GCB, Citi India offers the full range of consumer banking products and services. It
offers personalized and customised offerings for customers across the wealth continuum starting with salaried accounts (Suvidha); the newly defined emerging affluent (Citibanking),
the affluent (Citigold) and for the high-net-worth individuals (Citigold Select). With more
than 2 million cards in force, Citibank is one of the leading card issuers in India with a
diverse suite of innovative and differentiated products. Citi Wealth Advisors is the company's
broker-dealer platform for retail clients.
In line with its commitment to make a positive difference in the communities in which it
works, Citi India's Citizenship program focuses on areas of financial capability & asset
building, microfinance, enterprise development, and youth, education & livelihoods.

29 | MNCs IN BANKING IN INDIA

CONCLUSION:
Public opinion and government policy with respect to MNCs, in other words, conjure up the
image of a fault line along the earth's crust, quiet for the moment but with pressures building
below that couldwilldivide the earth above. Despite the best-educated guesses, however,
nobody really knows just when and under what circumstances this will happen or how severe
the damage will be. Already odd alliances have been formed among the parties most affected
by

the

growthofMNC.

These claims and counterclaims suggest that, in a world becoming smaller each day, with
corporate mergers across national boundaries becoming more common and a technological
and information revolution unlike any in the past, calls will continue to grow about bringing
the aspirations of private enterprise more in line with national needs. How that will happen or
whether it is even possible remain unanswered questions. The failure of the United States and
Europe to resolve their economic differences and a growing movement toward economic
regionalism in East Asia, including mutual currency supports, cooperative exchange systems,
and an East Asian free trade area, even suggest a worldwide backlash already under way
against economic globalization. At the same time, it is difficult to imagine anything less than
a highly integrated world economy or one without the glue of the multinational corporations
that

helped

bring

it

about

in

the

first

place.

MNCs in India do not necessarily perform better than the system average, and face the same
liability of foreignness as other MNCs in other markets when they see themselves constrained
to the type of clients they can deal with and their inability in negotiating with delinquent and
defaulted accounts. The analysis of the levels of access to banking services indicates that
large segments of the population still are not serviced by the banking sector.

30 | MNCs IN BANKING IN INDIA

BIBLIOGRAPHY

http://www.banknetindia.com/fbanklinks.htm
http://financialservices.gov.in/banking/ListofForeignBanks.asp
http://articles.economictimes.indiatimes.com/2012-12-12/news/35774103_1_foreign-

banks-royal-bank-deutsche-bank
http://www.businesstoday.in/magazine/special/oldest-mnc-in-india-stanchart-

standard-chartered-bank/story/194627.html
http://www.gkspread.com/2013/10/What-are-the-features-of-multinational-

companies.html
Particular Bank websites

31 | MNCs IN BANKING IN INDIA

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