More foreign banks eager to enter India

Possible easing on banking regulation encourages up to 8 foreign lenders to establish unit.

Foreign banks have been in India for more than 150 years but more overseas lenders are now queuing up to set up operations, amid signs that tough restrictions on entry may be eased.

Five to eight foreign banks are seeking to come to India, a source familiar with the industry said, with the country viewed as attractive because of gaps in the market and a buoyant economy that has created wealthier clients.

"India is in focus. It is a high-growth market," said Abizer Diwanji, head of financial services at consultancy KPMG India. "Foreign banks are building their base here, focusing on high-net-worth clients."

Last week Britain's Standard Chartered Bank raised 530 million dollars in a novel share sale through Indian Depository Receipts, which gives Indians an opportunity to get a global exposure to banking.

The London-based lender, which as The Chartered Bank opened its first overseas bank in the eastern city of Calcutta in 1858, called the fund-raising issue -- which was oversubscribed by more than double -- a "homecoming."

Australia's third-largest bank, ANZ, has been given the go-ahead for retail and wholesale banking operations. Credit Suisse, which already has an Indian investment banking, wealth management and mutual fund arm, is following suit.

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