27% jump in bnaks overseas business

The 14 Indian banks with overseas operations further expanded their footprint in foreign markets in the 2023 fiscal year. An RBI survey found that their consolidated overseas business advanced 27.15 percent at Rs 18.36 lakh crore ($224.4 billion) in the year from Rs 14.44 lakh crore ( $190. 6 billion) in 2021-22.

Of this, says the International Trade in Baking Services (ITBS) survey that the credit extended by their overseas branches rose to 9.75 lakh crore ($ 118.5 billion) from Rs.7.77 lakh crore ($ 102 billion) in the previous year, while the deposits mobilized jumped to Rs. 6.17 crore ($ 75 billion) from Rs.4.5 lakh crore ($53.3 billion).

During the year the total assets/liabilities of the branches grew to Rs.15.51 crore ($188.5 billion) from Rs.14.02 lakh crore ($185 billion)

The credit disbursed by their subsidiaries moved up to 1.20 lakh crore ($ 14.5 billion) from Rs.1.09 lakh crore ($14.4 billion) while the deposit mobilized surged to Rs.1.35 lakh crore (16.4 billion) from Rs1.11 lakh crore ($ 14.7 billion)

The Subsidiaries’ total assets/liabilities soared to Rs.1.93 lakh crore ($23.5 billion) from Rs1.67 lakh crore ($22 billion).

During the year under review, the total income of the branches zoomed to Rs 61 crore from Rs.23 crore against the total expenditure of Rs. 51 crore ( Rs. 22.95 crore), while the income of their subsidiaries during the period went up to Rs. 1.2 lakh crore against the total expenditure of Rs.10,1 crore (Rs.6.2 crore).

The survey found employee strength of Indian banks’ overseas branches and subsidiaries rose by 0.5 per cent and 6.2 per cent respectively. The tightening global monetary policy cycle during the year led to a substantial rise in interest income and expenses across the bank groups.

The total income to assets ratio of overseas braches of Indian banks increased to 3.9 per cent (1.6 per cent in 2021-2022). However, share of fee income in total income came down at 11.5 per cent.

Branches of Indian banks in the United Arab Emirates (UAE) generated highest fee income followed by those in the United Kingdom (UK), Hong Kong and Singa