Loans and advances of foreign banks operating in India grew 13% in FY19

Loans and advances of foreign banks operating in India rose about 13% to nearly Rs 3.97 trillion in 2018-19 (FY19). This was slightly ahead of the 11% growth in this regard at scheduled commercial banks in general, comprising private, government-owned, foreign, and small finance banks (SFBs). 

The loan book of private banks grew at a much higher rate, of 25%. Public sector banks expanded theirs by only 4%. SFBs, a group of recent origin, showed 70.5% growth in loans. Deposits at foreign banks rose 17% in FY19, to Rs 5.8 trillion, from Rs 4.95 trillion the previous year. Their capital base increased to Rs 77,809 crore, from Rs 67,883 crore, a 15% increase, according to the RBI’s report on Trends and Progress of Banking in India 2018-19. 

Foreign banks’ borrowings rose to Rs 1.51 trillion in FY19, from Rs 1.3 trillion — an 18% spike. Other assets rose by 67% over the year, to Rs 1.47 trillion. The number of foreign banks did not rise, but the numbers of branches did, from 286 to 299. The RBI adds that two more foreign lenders, SBM Bank and DBS Bank, were issued a licence in December 2017 and October 2018, respectively, and commenced operations as wholly owned subsidiary from December 1, 2018, and March 1, 2019, respectively.