Most foreign banks are still groping for the right India strategy.

The top 20 foreign banks operating in India employ 26,530 people. This will increase by 50 per cent to 39,770 by 2008. Fifteen of the top 20 overseas players predict at least a 20 per cent increase of staff strength; five banks project an increase of 100 per cent and one of them anticipates a 650 per cent increase. This is part of the findings of PrieceWaterhouseCoopers’ study Foreign Banks in India 2006 that was released recently. Presumably, the staff strength is inclusive of those employees who are attached to business process outsourcing operations of the overseas entities and not commercial banking alone. What is quite amazing is that only 46 expatriates (or 0.17 per cent) are employed by these 20 foreign banks. This number will increase to 72 by 2008. Five of the top 20 banks have no expatriates on their payroll and the maximum number of expatriates present at any individual foreign bank is 10.

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