The consistent growth of remittances has caught the attention of many banks in India. The latest data pointed out that Remittance flows into India were $11.2 billion in the first quarter of the fiscal up from $9.3 billion in the preceding quarter.
Remittances are transfer of money by migrant workers back to their family and friends staying in another country. Remittances encourage economic growth across the globe. Most remittances from the United States of America are directed towards countries in Asia.
Leading banks like ICICI say that their main focus would be tapping this market. "We will focus only on the Indian clientele abroad and not on the natives much," said Chanda Kochhar, MD and CEO of ICICI Bank.
With discussions around deals like Bharti-MTN, Essar's search for Shell refineries abroad and Indian hotels planning to increase their foreign presence, banks want to expand their overseas expansion by following an Indian-centric strategy.
OP Bhatt, chairman of the largest Indian lender, SBI said that they knew how Indians did business and therefore their focus was to help Indians residing abroad and those who want to operate businesses abroad.
Indian banks, presently, are not going after the foreign clients but are aiming to tap the international Indians and natives with global plans.