Business Environment, 4th Edition by Pearson

Foreign Investment | 639

CASE STUDY

The policy of foreign ownership of banks continues to dominate the headlines in

Andhra Pradesh. Last week, the Finance Minister announced that the government

would allow a creeping increase at the rate of 10 per cent every year in the foreign

ownership of banks in India. Over a period of time and combined with equivalent

voting rights, this would enable FIIs to acquire a complete control of the Indian

private sector banks. Foreign banks, have, of course, been in the forefront in bringing

the consumer finance products such as credit cards and auto loans to the market. But

the pioneer in credit cards was an Indian ...