Indian banks' overseas business grows 7.5-43.1% in FY20, shows data

In FY19, lenders had seen a contraction in global loan book after letters of comfort were discontinued

Indian banks, after witnessing a flat rate of growth or contraction in overseas advances in FY19, reported an increase of 7.5-43.1 per cent in global lending in FY20, with emphasis on local businesses and external commercial borrowing (ECB).

In FY19, international business received a blow after letters of comfort (LoCs) were discontinued in the wake of the uncovering of the fraud at Punjab National Bank in February 2018.

In March that year, the Reserve Bank of India (RBI) discontinued issuing letters of undertaking (LoUs) and LoCs for trade credit in import.

Bankers said businesses linked to India (corporate and NRIs) had a dominant