Indian Banks are increasing their presence Overseas: RBI Report

As per RBI report, the Indian Banks are increasing their presence overseas. Important points of the report are listed below.

• Indian banks flexed their muscles abroad: They grew their subsidiaries and boosted employee headcount in foreign branches and subsidiaries by 6.2%.
• Meanwhile, foreign banks in India retreated: They saw their branches and staff shrink.
• Indian banks thrived overseas: They increased deposit mobilization and lending activities, with UAE branches generating the highest fee income.
• Profitability gap persists: While Indian branches improved their income-to-assets ratio, it remained lower than foreign banks in India.
• Citi-Axis deal reshapes landscape: The report hints at the Citigroup’s retail business shift to Axis Bank, impacting foreign bank aggregates.
• Global interest rate hikes impacted all: Rising rates boosted income and expenses for both Indian and foreign banks.
• Fee income share differs: Foreign banks in India relied more on fee income than Indian branches abroad, with the latter focusing on credit and trade finance services.