High costs deter foreign banks’ India expansion

Goldman Sachs and Morgan Stanley have backed away from their aggressive pursuit of a full banking licence to operate in India, a decision that points to the growing cost of expanding business in India, reports FT.com. While Morgan Stanley has decided to withdraw its application for a commercial banking licence, Goldman Sachs, which also applied […]

By Staff | January 31, 2013 | Last updated on January 31, 2013

1 min read

While Morgan Stanley has decided to withdraw its application for a commercial banking licence, Goldman Sachs, which also applied for one, “has stopped actively lobbying” for it.

India’s banking system, which is on course to becoming the world’s third largest by 2025, has generated much interest among foreign players looking for new markets to boost sagging business growth.