Indian banking system is moving from the public dominated banks to the private and foreign banking. The rapid growth of the private banking has an impact over the profitability of the banks. This paper analyses the effect of emergence of new participant’s i.e., private and foreign bank entry and documents important trends and patterns in foreign banks' presence. The data collected cover the period 2015-2018 and include the complete trail of public sector bank. It was document that there has been a sharp increase in foreign bank presence in most regions over this period, with especially low and lower middle income payment banker categories have emerged in the banking of country we analyses the trend of the total income of the public sector banks. By using autocorrelation function with SPSS-19 software the results revealed that the competition with the banks has results adversely to public sector banks and they need new strategies to increase their profits.

KEYWORDS:  Indian Banking System, Foreign Banking, Public Sector Banks, Modern Banking.