RBI ITBS 2024–25 Indian Banks Abroad Show Growth Foreign Banks Expand in India

RBI Survey on International Trade in Banking Services (ITBS) 2024-25 Critical findings.

1. Survey Scope:

• Indian banks with foreign operations were covered by 13 banks and foreign banks in India were covered by 44 banks.

2. Expanding overseas by Indian Banks:

• General Development: Consolidated balance sheets increased (9.1% branches, 4.2% subsidiaries).

Physical Presence:

• Branch abroad declined a bit (116 to 115), whilst subsidiaries/JVs grew (422 to 430 branches).
• The total employees reduced although local employees contracted in foreign countries where they were employed.
• Business Activity: Lending ( +5.6) and deposit mobilization ( +9.4) both rose.
• Fee Income: Hong Kong was the leading fee-generating center, second by the UAE, Singapore and the UK.

3. The Operations of the Foreign Banks in India:

• Strong Growth: Consolidated balance sheets had an increase of 17.5% (in USD terms).
• Business Activity: Credit increased by 8.4 percent, which was higher than deposit increased by 6.8 percent.
• Physical Presence: Number of branches has decreased marginally (779 to 776) though number of employees has been on the rise.

4. Purpose of the Survey:

• Tracks cross-border banking services(credit, deposits, forex, etc.) to determine integration of India into financial system of the globe.