Foreign banks are not interested only in corporate banking but in growing their presence in rural areas that offer immense opportunities, he said at a seminar.
"India needs to get out of the East India Company mindset," Harris said. The company had pressed for restricting the entry of overseas banking entities in the 19th century, citing the adverse impacts of a liberal policy on Indian business.
Harris said, foreign banks would like to help in poverty alleviation. Standard Chartered has had experience in countries such as Pakistan and China.
"We are settling down to pretty mediocre financial architecture," said Citi India CEO adding that there was an urgent need to develop the corporate bond market and interest rate and currency futures may be introduced at the earliest.
Bankers said despite reforms since early 1990s the banking sector was still dominated by state-owned banks, which accounted for around 70 per cent of banking assets, while the share of foreign banks is less than 10 per cent.
More From This Section
At present RBI annually gives 14-15 branch licenses to foreign banks. It has prepared a blue print for opening Indian financial sector to international compatition 2009.
"There is convergence of the cisis on Fs -- food, fuel and finance. Our action has always been spurred by some crisis," State Bank of India Chairman OP Bhatt said.
Pointing to the report, which is expected to be finalised by Septemeber, HDFC Chairman Deepak Parekh said that the public sector banks (PSBs) need to be strengthened through entry of outside managers at the top besides reducing the situation of over-control by government.
"The challenge is to have a financial sector that can support growth rate of 10 per cent," said ICICI Bank Managing Director & CEO KV Kamath.
HSBC Indian CEO Naina Lal Kidwai said PSBs have improved the technology backbone but retaining talent remains a challenge.