Competition has been enhanced by gradually removing administered interest rate structures, permitting entry of new private sector banks, and expanding the branch network of foreign banks. Unlike in most countries, a branch of a foreign bank in India can conduct any business that a bank incorporated in India may do.
On ownership, while over 70% of the banking business was in fully public sector-owned banks ten years ago, it is now less than 10%, since there is a mix of public and private ownership in most of the public sector banks. In fact, in many large public sector banks, foreign ownership is close to domestic private ownership.