With signals of easing up of regulations regarding the entry of foreign banks in India, more and more banks seem to be eyeing the Indian subcontinent to set up operations here.

According to a source familiar to the issue, five to eight banks have plans to come to India. The Indian market seems lucrative to them owing to the gaps present in the economy.

"India is in focus. It is a high-growth market," added Abizer Diwanji, head of financial services at consultancy KPMG India. "Foreign banks are building their base here, focusing on high-net-worth clients".

Recently Standard Chartered Bank raised 530 million dollars via IDRs. The issue was oversubscribed by more than a double.

Australian banking major, ANZ has been again given license to start operations in India. The bank gained entry in India after 10 years after it had left the country following heavy involvement in the Harshad Mehta scam.

Swiss Bank Credit Suisse is also starting operations in the country.

"India is a real market of substance," ANZ's chief executive for Asia Pacific, Europe and America, Alex Thursby, has said.

Foreign banks have brought significant developments in the banking sector. They were instrumental in bringing automated teller machines (ATMs) and credit cards to India.

Currently there are thirty-four foreign banks operating in India with Citibank, Standard Chartered and HSBC currently accounting for 70 percent of their total business.

The issue which could delay the entry of these banks in India is the current trouble seen in the Eurozone. "Typically, foreign banks are dependent on the fortunes of their head office," said one banking analyst.