RBI releases results of Survey on International Trade in Banking Services: 2017-18
View PDFThe Reserve Bank of India on November 14 issued a Press Release furnishing the results of the survey of international trade in banking services (ITBS), 2017-18, which provides information on core banking services (e.g., deposit, credit) and financial auxiliaries’ services rendered by banks with cross-border presence, based on explicit/implicit fees/commissions charged to...
The Reserve Bank of India on November 14 issued a Press Release furnishing the results of the survey of international trade in banking services (ITBS), 2017-18, which provides information on core banking services (e.g., deposit, credit) and financial auxiliaries’ services rendered by banks with cross-border presence, based on explicit/implicit fees/commissions charged to customers.
In addition to these, the survey also provides responses on the functioning of 186 overseas branches and 345 overseas subsidiaries of Indian banks as well as 286 branches of foreign banks operating in India and reports the number of employees posted in foreign locations by these banks.
Notably, as all commercial banks with cross-border presence responded to the survey, these results reflect the census position.
Highlights:
• Indian banks recorded a marginal compositional shift in their overseas presence during 2017-18 with staff strength declining in their foreign branches but increasing in their foreign subsidiaries even as the number of foreign bank branches in India remained unchanged during the year.
• Indian banks’ overseas presence continued to be dominated by foreign branches, the consolidated balance sheet of which was ten times the size of that of their foreign subsidiaries.
• The level of credit and deposits of overseas branches of Indian banks declined during the year, resulting in some reduction in their consolidated balance sheet; in contrast, balance sheet expansion was recorded by their overseas subsidiaries and foreign banks in India.
• Foreign branches of Indian banks continued to focus on fund-based operations and the share of credit in their total assets (58 percent) was higher than that of foreign banks’ branches in India (42 percent).
• The income of overseas branches of Indian banks increased during the year whereas branches of foreign banks in India recorded decline in both interest and non-interest income.
• A substantial portion of the fee income of foreign banks operating in India continued to accrue from derivative, stocks, securities, and forex trading services, followed by payment and money transmission services, whereas overseas branches of Indian banks generated a major share of fee income by rendering credit related services, derivative, stocks, securities, forex trading services, and trade finance-related services.
• Branches of Indian banks located in the UK generated the highest fee income, followed by their branches in the UAE, Singapore, and Hong Kong.
All these highlights are further detailed in the Press Release, which comprises Table 1: Employment Distribution – Bank groups; Table 2: Consolidated Balance Sheet Items – Bank groups; Table 3: Consolidate Income and Expenditure: Bank groups; Table 4: Activity-wise Composition of Fee Income from Banking Services – Bank groups; Table 5: Country-wise and Activity-wise Banking Services – Bank groups; as well as a table on Indian banks' Subsidiaries Operating Abroad. The Release also provides details on the Banking Services Covered in the Survey.
To read the entire Official Press Release, including complete details of the abovementioned Tables, please view the file attached herein.