Domestic banks’ overseas presence up marginally in FY17: RBI


The presence of domestic banks in the overseas markets has seen a marginal increase in 2016-17 with the number of branches increasing to 192 from 189 in 2015-16, according to RBI data.

There was a marginal decrease in the employee strength of the domestic banks operating abroad to 3,984 in 2016-17 from 4,040 in 2015-16.

On the other hand, foreign banks operating here saw their number of branches falling to 286 in 2016-17 from 317 in 2015-16. There was also a decrease in their head count to 24,766 in 2016-17 from 26,642 in 2015-16, according to the RBI survey of international trade in banking services.

The survey provides responses on functioning of 192 overseas branches and 325 overseas subsidiaries of domestic banks as well as 286 branches of foreign banks here.
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The consolidated balance sheet of overseas branches of domestic banks and their overseas subsidiaries contracted during 2016-17.

Total assets/liabilities of domestic banks’ branches operating abroad stood at USD 224.4 billion as of March 2017 against USD 231 billion in March 2016. Assets/liabilities of foreign banks’ branches in the country were at USD 124.7 billion in 2016-17 from USD 123.2 billion in 2015-16.

Aggregate deposits of foreign banks rose marginally during 2016-17 to USD 71.7 billion from USD 69 billion in 2015-16. It declined for overseas branches of banks to USD 81.7 billion in 2016-17 from USD 84.8 billion in 2015-16.

Domestic banks’ branches operating abroad saw rise in the fee income to Rs 9,400 crore in 2016-17 from Rs 8,680 crore in 2015-16.

“Overseas branches generated a major share of fee income by rendering credit related services, trade finance related services and derivative, stocks, securities and forex trading services,” the survey showed.

Foreign banks saw a fee income of Rs 7,130 crore in 2016-17 against Rs 7,060 crore in 2015-16, mainly on account of payment and money transmission services.