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The fee income generated by overseas branches of Indian banks declined to Rs 8,680 crore (USD 1.3 billion) in 2015-16 from 9,430 crore a year ago. However, total income of Indian banks' branches operating abroad increased by Rs 1,970 crore to Rs 45,200 crore, whereas the income of foreign banks' branches operating in India declined marginally by Rs 30 crore to Rs 64,740 crore. This was reflected in a survey on International Trade in Banking Services (ITBS) put on RBI's website. The survey provides information on the branches/subsidiaries of Indian banks operating abroad and foreign banks operating in India. "The fee income generated by overseas branches of Indian banks declined to Rs 8,680 crore in 2015-16 from Rs 9,430 crore a year ago," the survey said. Trade finance related services of the Indian bank's overseas branches declined from Rs 1,510 crore in 2014-15 to Rs 1,370 crore in 2015-16.
It also fell in case of foreign bank branches operating in India. Indian bank branches in UK had the largest contribution in providing banking services in terms of fee income, followed by the UAE and Hong Kong. Fee income of foreign banks' branches operating in India also declined to Rs 7,080 crore from Rs 7,270 crore in the previous year. Indian banks' branches operating abroad recorded credit growth of 5.8 per cent to Rs 8.81 lakh crore (USD 132.9 billion) in March 2016 and lending by foreign banks operating in India increased by 12.4 per cent to Rs 3.77 lakh crore. On the other hand, deposits of foreign banks' branches operating in India increased by 13.7 per cent to Rs 4.57 lakh crore in March 2016, whereas the deposits of overseas branches of Indian banks declined marginally by 0.9 per cent to Rs 5.6 lakh crore. Overseas branches of Indian banks employed 63.1 per cent of local employees, 33.9 per cent from India and remaining 3 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.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)