Why Citigroup and other foreign banks missed the India growth story

Regulatory framework also stifled Citi's growth in India despite its conscious efforts to make inroads in the country

In 2000, the foreign banks’ market share in advances, among all commercial banks, was 8%. In 2005, it declined to 6.5% and then dropped to 4% by 2020. Contrast this with the private sector banks – the loan market share went up from 12.5% in 2000 to 36% in 2020. If one considers the loan market share of non-banking finance companies, which has grown leaps and bounces over the last decade, foreign banks' performance in the overall credit market will look further dismal.

Loans extended by banks in India tripped in the last 11 years, from Rs 32.4 trillion rupees