Indian banks in Canada fear biz loss amid row

If there is a decline in the number of Indian students pursuing higher studies in Canada due to the ongoing diplomatic tensions between the two countries, it may have implications for Indian banks operating in the North American country, senior bank officials said.

- HARSH KUMAR

India and Canada have expelled their top diplomats amid escalating tensions over the assassination of a Khalistani leader on Canadian soil.

"Majority of our customers in Canada are Indian students who do financial transactions through us. If there is a fall in Indian students travelling to Canada for studies, it may impact our business. However, the situation has not reached that level so far and are hoping to run the business as usual," a senior bank official said.

State Bank of India (SBI) and ICICI Bank have subsidiaries in Canada. They could face potential impacts if this key segment of their customer base shrinks.