This study is further an addition to the debate relating to further deregulation of foreign banks in Indian context. It contributes to the debate by analyzing the evolution of foreign banks, beginning with the colonial era, up to the current period. It presents the analysis till 2015 and concludes that foreign banks enjoy high profits in spite of entry of new foreign banks. Post reforms Era saw a significant increase in the number of banks after deregulation of entry was found to be accompanied by considerable fluctuations. It is not clear how supposed benefits of entry of foreign banks will gear up the economy in the absence of stability of new entrants.