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.
