SUBSCRIBE(free)-Daily Updates (Click Verification Link Received in Your Email)

International Trade in Banking Services: 2015-16 (RBI Survey)

RBI Press Release : 2016-2017/970 dated 19th October, 2016

The Reserve Bank of India today released, on its website, the data related to the 2015-16 round of Survey on International Trade in Banking Services (ITBS), which provides information on the branches/subsidiaries of Indian banks operating abroad and foreign banks operating in India. The survey captures data on financial auxiliaries’ services rendered by the banks based on explicit/implicit fee/commission charged to customers (details of these services are given in the Annex). The latest round of the survey covered 201 overseas branches and 249 overseas subsidiaries of Indian Banks as well as 317 branches of foreign banks operating in India. As all scheduled commercial banks (SCBs) with cross-border presence responded to the survey, these results present the census position.

Main Findings:
  • Employment Distribution and Growth: Overseas branches of Indian banks employed 63.1 per cent of local employees, 33.9 per cent from India and remaining 3.0 per cent from other countries in 2015-16. In contrast, 99.4 per cent employees of foreign banks operating in India were from local sources. During the year, employee-strength of Overseas branches of Indian banks and foreign banks operating in India increased by 3.7 per cent and 4.4 per cent, respectively (Table 1).
  • Credit and Deposit Growth: Both groups of banks recorded business growth during 2015-16. Indian banks’ branches operating abroad recorded credit growth of 5.8 per cent to Rs. 8,813.0 billion (US$ 132.9 billion) in March 2016 and lending by foreign banks operating in India increased by 12.4 per cent to Rs. 3,776.6 billion (US$ 56.9 billion). On the other hand, deposits of foreign banks’ branches operating in India increased by 13.7 per cent to Rs. 4,576.9 billion (US$ 69.0 billion) in March 2016, whereas the deposits of overseas branches of Indian banks declined marginally by 0.9 per cent to Rs. 5,607.1 billion (US$ 84.5 billion) (Table 2).
  • Income and Expenditure: During 2015-16, total income of Indian banks’ branches operating abroad increased by Rs. 19.7 billion to Rs. 452.0 billion (US$ 6.8 billion), whereas the income of foreign banks’ branches operating in India declined marginally by Rs. 0.3 billion to Rs. 647.4 billion (US$ 9.8 billion). The ratio of total income to total expenditure for overseas branches of Indian banks and foreign banks operating in India stood at 109.2 per cent and 130.0 per cent, respectively (Table 3).
  • Fee Income Generated: The fee income generated by overseas branches of Indian banks declined to Rs. 86.8 billion (US$ 1.3 billion) in 2015-16 from Rs. 94.3 billion (US$ 1.5 billion) a year ago. Fee income of foreign banks’ branches operating in India also declined to Rs. 70.8 billion (US$ 1.1 billion) from Rs. 72.7 billion (US$ 1.2 billion) in the previous year (Table 4).
  • Activity-wise Banking Services: Overseas branches of Indian banks generated major share of fee income by rendering ‘Credit related services’, ‘Derivative, stock, securities, forex trading services’ and ‘Trade finance related services’. On the other hand, the major sources of fee income for the foreign banks operating in India were ‘Payment and money transmission services’, ‘Derivative, stock, securities, forex trading services’ and ‘Trade finance related services’ (Table 4).
  • Country-wise Banking Services: Indian bank branches in UK had the largest contribution in providing banking services in terms of fee income, followed by UAE and Hong Kong (Table 5).

An article analysing the results of the Survey on International Trade in Banking Services for 2015-16 is being published in the November 2016 issue of the RBI Bulletin.


Table 1: Employment Distribution of Indian Banks’ Overseas Branches, Subsidiaries and Foreign Banks Operating in India


Indian banks’ branches operating abroad

Indian Banks' Subsidiaries Operating Abroad

Foreign Banks’ Branches in India

2014-15

2015-16

2014-15

2015-16

2014-15

2015-16

Total number of branches

178

201

235

249

313

317

Total number of employees

3,897

4,040

3,424

3,382

25,519

26,642

of which:







Local

2,437

2,549

2,832

2,910

25,354

26,487

Indians

1,322

1,368

469

398

NA

NA

Others

138

123

123

74

165

155

Notes (Applicable to all tables): NA: Not applicable.
Financial Year-end RBI Reference Rates are used for Rupee-US Dollar conversion.
Figures in the parentheses indicate annual growth in the respective item.
The data for 2015-16 are provisional.


Table 2: Balance Sheet Items of Indian Banks’ Overseas Branches, Subsidiaries and Foreign Banks’ Branches in India (end-March)

Items

Amount in Rs. billion

Amount in US$ billion

2014-15

2015-16

2014-15

2015-16

Indian Banks' Branches Operating Abroad

Credit extended

8,331.5

8,813.0

133.1

132.9

Deposits mobilized

5,659.3

5,607.1

90.4

84.5

Total Assets/ Liabilities

14,520.0

15,101.7

232.0

227.7

Indian Banks' Subsidiaries Operating Abroad

Credit extended

756.3

895.5

12.1

13.5

Deposits mobilized

621.8

714.0

9.9

10.8

Total Assets/ Liabilities

1,069.5

1,289.0

17.1

19.4

Foreign Banks’ Branches in India

Credit extended

3,359.9

3,777.6

53.7

56.9

Deposits mobilized

4,025.3

4,576.9

64.3

69.0

Total Assets/ Liabilities

7,497.6

8,172.7

119.8

123.2


Table 3: Income and Expenditure of Indian Banks’ Overseas Branches, Subsidiaries and Foreign Banks’ Branches in India

(Amount in Rs. billion)

Items

Indian banks’ branches operating abroad

Indian Banks' Subsidiaries Operating Abroad

Foreign Banks’ Branches in India

2014-15

2015-16

2014-15

2015-16

2014-15

2015-16

Income

432.3

452.0

59.0

63.3

647.7

647.4


(8.1)

(4.56)

(5.2)

(7.29)

(10.3)

(-0.05)

Of which;







Interest Income

372.1

387.8

47.0

52.0

499.9

522.6


(14.5)

(4.22)

(1.5)

(10.64)

(10.4)

(4.54)

Expenditure

318.8

413.9

48.4

59.8

489.5

498.1


(4.0)

(29.83)

(5.7)

(23.55)

(9.6)

(1.76)








Of which;

244.9

259.7

22.6

24.7

236.7

240.9

Interest Expenses

(16.2)

(6.04)

(-0.9)

(9.29)

(12.7)

(1.77)



Table 4: Activity-wise Composition of Fee Income from Banking Services of Indian Banks’ Overseas Branches and Foreign Banks Operating in India

(Amount in Rs. billion)

Banking Service

Indian banks’ Branches Operating Abroad

Foreign Banks' Branches Operating in India

2014-15

2015-16

2014-15

2015-16

Deposit Account Management Services

1.1

1.2

2.0

1.2

Credit Related Services

26.6

26.2

8.7

8.6

Financial Leasing Services

0.0

0.0

0.0

0.0

Trade Finance Related Services

15.1

13.7

12.1

11.9

Payment and Money Transmission Services

3.4

3.3

13.3

14.8

Fund Management Services

0.0

0.0

4.1

4.5

Financial Consultancy and Advisory Services

1.2

0.7

12.5

6.8

Underwriting Services

0.0

0.0

0.4

0.5

Clearing and Settlement Services

0.5

0.5

0.5

0.8

Derivative, Stock, Securities, Foreign Exchange trading Services

19.6

20.3

14.8

13.4

Other Financial Services

26.8

20.9

4.3

8.3

Total

94.3

86.8

72.7

70.8

(5.2)

(-8.0)

(-7.7)

(-2.6)


Table 5: Country-wise and Activity-wise Banking Services delivered by Overseas Branches of Indian Banks and Subsidiaries of Indian Bank