RBI Releases 2024-25 Survey Results on International Trade in Banking Services
SDG 8: Decent Work & Economic Growth | SDG 17: Partnerships for the Goals
Institutions: Reserve Bank of India | Ministry of Finance
The Reserve Bank of India (RBI) has published the 2024-25 results of its annual Survey on International Trade in Banking Services (ITBS), covering 13 Indian banks with overseas branches/subsidiaries and 44 foreign banks in India. Indian banks expanded their overseas footprint via subsidiaries/joint ventures, with branches and employees rising by 1.9% and 6.1%. Overseas balance sheets grew by 9.1% (branches) and 4.2% (subsidiaries), while foreign banks in India saw a faster 17.5% growth in USD terms. Lending and deposits by Indian banks abroad rose 5.6% and 9.4%, respectively.
Onshore, foreign bank branches in India posted 8.4% credit growth, but deposit growth slowed to 6.8% (down from 16.4%). Shifts in global monetary cycles moderated interest income/expenses across cohorts, with Indian banks’ overseas branches showing the steepest slowdown (income growth down to 8% vs 72% last year). Fee income rose 9.4% for foreign banks in India and 4.3% for Indian banks abroad, led by credit, derivatives, FX trading, payments, and trade finance.
The ITBS results highlight the evolving global footprint of Indian banks and the increasing competition posed by foreign banks within India. While asset growth abroad remains steady, declining margins and regional variations in fee income (notably Hong Kong’s rise and UK’s fall) underline the need for diversified overseas strategies. For policymakers, the findings also inform India’s stance on financial sector liberalisation and resilience of banks in a shifting global monetary environment.
What is ITBS? → RBI’s annual survey tracking cross-border banking services (credit, deposits, trade finance, payments, FX/derivatives) provided by Indian banks abroad and foreign banks in India. It helps assess India’s integration into global financial flows.
What is fee income in banking? → Revenue earned from services (commissions, trading, payments, trade finance) rather than interest. It matters because it diversifies income and buffers banks against credit/interest rate cycles.
Follow the full report here: https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=61292