Developments in International Banking and Prospects of Indian Banks Overseas Business

In the context of major changes taking place in interrnational banking and in the international financial markets, the institutional structure and technical expertise of Indian banks operating overseas will have to be revamped and made more responsive to market developments. This paper first traces recent developments in international banking and finance and then assesses the past performance of Indian banks overseas and their future prospects. The author concludes that unless prompt measures are taken to consolidate the overseas operations of all Indian banks in order to develop a few viable banking units abroad, there is a danger of being overwhelmed by the revolutionary changes taking place in the international banking world.