Overseas Indian banks increased credit portfolio in 2013-14: RBI

5 Dariya News

Chennai 16-Jan-2015

Indian bank branches operating overseas increased its credit portfolio by 31.2 percent in 2013-14 whereas the credit by foreign banks in India declined 3.1 percent during the same period, the Reserve Bank of India (RBI) said Friday.In a statement issued here, the RBI said as per its study: "Credit extended by Indian banks' branches operating overseas increased by 31.2 percent to Rs. 7,684.4 billion ($127.9 billion) in 2013-14. In contrast, credit by foreign banks in India declined by 3.1 percent to Rs.2,982.1 billion ($49.6 billion)."

According to the annual survey on International Trade in Banking Services (ITBS) released Friday, deposits of Indian banks' branches operating abroad increased by 30.8 percent to Rs. 5,143 billion during 2013-14 whereas deposit mobilisation by foreign banks operating in India recorded 23.5 percent growth to Rs.3,501 billion ($58.2 billion).The total income of Indian banks' overseas branches went up by 7.7 percent to Rs.393.7 billion ($ 6.6 billion) in 2013-14, the survey said.

"In comparison, foreign banks operating in India had larger income growth of 11.8 percent and the amount of their total income was also higher at Rs.590.6 billion ($9.8 billion). The ratio of total expenditure to total income stood at 76.4 percent and 76.1 percent for Indian banks' overseas branches and foreign banks operating in India, respectively," RBI said.On people employed, Indian bank branches overseas employed 62.3 percent of employees from local sources, 29.8 percent from India and remaining 7.9 percent from other countries in 2013-14."In contrast, foreign banks working in India had an overwhelming share of local employees (99.4 percent) in their total employees. The number of employees in Indian banks' branches operating abroad increased by 5.5 percent during 2013-14. In the case of foreign banks operating in India, number of employees declined by 1.6 percent," the RBI said.