Banking industry of India consists of foreign and domestic banks.

The main purpose of this thesis is to measure the market concentration of Indian banking industry after the implementation of the reforms in financial sector and also to measure the financial performance of the top five foreign banks that are operating in India. After the reforms were implemented the foreign banks are allowed to operate more freely compared with the pre-reform period. Herfindahl-Hirschman Index (HHI) method is used to measure the market concentration and accounting ratios like ROA, NIM and C/I are used to measure the financial performance.Since the entry of foreign banks in India after the reforms process, it is observed that the banking system of India is highly concentrated and the market share of public sector banks reduced from 90 % to 60%.At the same time there is increase in the market share of foreign and new private banks. In terms of ROA, NIM and C/I it is observed that the foreign banks are performing better when compared with the other banks that are present in India.


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