Indian Banks Global Presence Expanded: RBI ITBS Survey

Current Context: The Reserve Bank of India (RBI) released the results of the 2022-23 round of its survey on International Trade in Banking Services (ITBS).

• The survey focuses on cross-border fund-based banking services and financial auxiliary services charged by foreign branches and overseas subsidiaries of Indian banks, as well as foreign banks operating in India.
• Here are some highlights from the survey:
• Indian banks increased their overseas presence through the subsidiaries route and their employee strength rose by 0.5% and 6.2% for foreign branches and subsidiaries, respectively, during 2022-23.
• The number of branches and employees of foreign banks in India contracted during the year.
• Overseas business of Indian banks expanded as both mobilisation of deposits and lending activities increased during the year.
• Total Income to assets ratio of overseas branches of Indian banks increased to 3.9% in 2022-23 (1.6% in 2021-22), but it remained lower vis-à-vis that of 6.9% for foreign banks in India.
• Branches of Indian banks in the United Arab Emirates (UAE) generated the highest fee income, followed by those in the United Kingdom (UK), Hong Kong, and Singapore.

Question:

Q.1 What does the ITBS survey by RBI focus on?
a. Cross-border fund-based banking services and financial auxiliary services charged by foreign branches and overseas subsidiaries of Indian banks, as well as foreign banks operating in India.
b. The GDP growth of India.
c. The inflation rate in India.
d. The unemployment rate in India.