Indian banks operating abroad see credit growth increase by 31.7% in 2012-13

Indian banks operating overseas witnessed higher credit growth compared to their foreign counterparts operating in India, going by Reserve Bank of India’s survey on international trade in banking services.

According to the survey for 2012-13, growth of credit extended by Indian banks’ branches operating abroad increased by 31.7 per cent to ₹5,85,570 crore ($ 107.7 billion). Credit extended by foreign banks operating in India increased 27.5 per cent to ₹3,07,700 crore billion ($56.6 billion) during 2012-13.

Deposits mobilised by Indian bank branches operating abroad increased 45.5 per cent to ₹ 3,93,070 crore ($72.3 billion) during 2012-13. In case of foreign banks operating in India, deposit growth moderated to 3.2 per cent at ₹ 2,83,510 crore.

The total income of Indian overseas branches increased 28.1 per cent to ₹ 36,560 crore ($ 6.7 billion) in 2012-13. In case of foreign banks operating in India, the total income increased by 13.1 per cent to ₹52,840 crore ($ 9.7 billion).

Total expenditure accounted for about 75 per cent and 71 per cent of the total income of Indian overseas branches and foreign banks operating in India, respectively.

In 2012-13, Indian banks had 170 overseas branches (163 in the previous year) while foreign banks had 316 branches in India (309 in the previous year).

Indian bank branches operating abroad generated major share of fee income by rendering credit related services and trade finance related services.

Bahrain, Belgium, Hong Kong, Japan, Singapore, Sri Lanka, UAE, UK and the US were the major countries which together accounted for nearly 92.2 per cent of the total banking services of the branches of Indian banks operating abroad.