R. Priya & Dr. M. Jegadeeshwaran (Assistant Professor) School of Commerce, Bharathiar University, Coimbatore, India.
The liberalization has invited many foreign banks and foreign capital into the Indian
economy (Massand Ajay B., Gopalakrishna B. V. (2016)). However, the aim set for the
liberalization and the entry of foreign banks is yet to be tested. This study discovers the effect of
foreign banks on Indian economy. The entire foreign banks and macroeconomic factors were
chosen for the study. Data on all foreign banksand macroeconomic factors from 2008-2018 were
collected from secondary sources to measure how Advances, Investments, Profitability,
Overheads and Non-Performing Assets affects the Indian economy. Factor analysis and
regression analysis was made to find the effect of foreign banks on Indian economy.