RBI Grade BNABARD ESISEBI
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Context:
“RBI MPC Unpacked: Key Theory Meets Today’s Macro Trends”Tap to play · from the C4S channel
The Reserve Bank of India (RBI) released its annual Survey on International Trade in Banking Services (ITBS) for 2024–25, highlighting the performance of Indian banks’ overseas operations and foreign banks in India.
Key Highlights:
| Category | Indian Banks Abroad | Foreign Banks in India |
|---|---|---|
| Branch / Employee Growth | – Overseas branches ↑ 1.9% – Employee strength ↑ 6.1% | — |
| Consolidated Balance Sheet Growth | – Branches ↑ 9.1% – Subsidiaries ↑ 4.2% | ↑ 17.5% |
| Credit Growth | Lending ↑ 5.6% | ↑ 8.4% |
| Deposit Growth | Deposit mobilisation ↑ 9.4% | ↓ 6.8% (vs. 16.4% last year) |
| Income & Profitability | – Overseas branches: • Interest income ↑ 8% (vs. 72% last year) • Interest expenses ↑ 9% (vs. 87.5% last year) • Income-to-assets ratio ↓ 5.9%– Subsidiaries: Ratio ↑ 7.4% | Income-to-assets ratio ↓ 7.1% |
| Fee Income Trends | ↑ 4.3% | ↑ 9.4% |
| Main Fee Income Drivers | Credit-related services, trading, payments, trade finance | Same (credit-related, trading, payments, trade finance) |
Top Locations for Indian Banks’ Fee Income (2024–25):
- Hong Kong (new leader)
- UAE
- Singapore
- UK (declined sharply)
Significance
- Reflects global policy shifts and slowing interest income after last year’s high growth.
- Indicates strong deposit mobilisation abroad but weakening domestic deposit growth of foreign banks.
- Shows shifting global hubs, with Hong Kong overtaking the UK as the key fee-generating centre.