According to RBI survey, foreign banks operating in India generated more income from fee-based business like derivatives, stock, securities, foreign exchange trading services and financial consultancy or advisory services
Foreign banks operating in India are generating more fee-based income from derivatives, stock, securities, and foreign exchange trading services and financial consultancy or advisory services, says a study conducted by the Reserve Bank of India (RBI)
The survey on ‘International Trade in Banking Services’ (2012-2013) shows a study on Indian banks’ branches and subsidiaries operating outside the country as well as the foreign banks operating in India.
The survey reveals that, the Indian banks’ branches, which originated outside India, generated their major share of fee income by rendering credit-related services and trade finance-related services. However,
Findings of the Survey on International Trade in Banking Services:
Employment Distribution and Growth
Credit and Deposit Growth
Income and Expenditure
Fee Income Generated
Country-wise Banking Services
Bahrain, Belgium, Hong Kong, Japan, Singapore, Sri Lanka, UAE, UK and USA were the major countries which together accounted for nearly 92.2% of the total banking services of the branches of Indian banks operating abroad.
The survey covered 170 overseas branches, 184 overseas subsidiaries of Indian Banks and 316 branches of foreign banks operating in India.
RBI said that it has done the survey with the intention of providing information on International trade in banking services (ITBS) of India. RBI has released the survey results including statistical data in tabular format to provide consistent and comparable data which are captured on financial auxiliaries’ services rendered by the banks based on explicit, implicit fees and commission charged to customers.
Nifty should rise above 6,115 gaining some strength
Thursday’s fall on the Indian bourses wiped off most of the gains of the past two days and brought a halt to the four-day winning streak. The fall followed from the weakness in the Asian indices and weak closing of the US market. Asian stocks declined Thursday as a private survey showed a faster-than-estimated drop in China's manufacturing in February. US indices were pulled down after the minutes from the Federal Reserve's policy setting meeting revealed little consensus about when short-term rates would begin to rise.
The BSE 30-share Sensex opened at 20,661 while the NSE Nifty opened at 6,127. The indices moved in a narrow range. The Sensex moved between 20,522 and 20,663 and closed at 20,537 (down 186 points or 0.90%), while Nifty moved in the range of 6,086 and 6,129 and closed at 6,091 (down 61 points or 1%). NSE recorded a volume of 50.51 crore shares.
The International Monetary Fund, in a staff report prepared for central bankers and finance ministers from the Group of 20, said on Wednesday that significant downside risks remain for the world economy.
US indices closed lower. Federal Reserve policy makers backed away from their year-old commitment to consider raising interest rates when unemployment falls below 6.5%. Minutes of their January meeting showed that several policy makers also said that in "the absence of an appreciable change in the economic outlook, there should be a clear presumption in favour" of continuing to trim the Fed's bond purchases by $10 billion at each meeting.
Atlanta Federal Reserve President Dennis Lockhart said he expects a mid-2015 interest-rate hike.
A larger-than-expected drop in home construction in January also weighed on sentiment. Construction on new US homes tumbled 16% in January to a seasonally adjusted annual rate of 880,000, with drops for single-family homes and apartments, according to Commerce Department.
Except for Jakarta Composite (up 0.12%) all the other Asian indices closed in the red. Nikkei 225 was the top loser (2.15%).
A Chinese manufacturing index fell to the lowest level in seven months in February, adding to challenges for Communist Party officials grappling with risks to the financial system from trust defaults and soured loans. The preliminary February reading of 48.3 for a Purchasing Managers' Index released by HSBC Holdings Plc and Markit Economics compared with January's final figure of 49.5.
Japan's trade deficit widened to a record in January on the back of surging import costs. The 2.79 trillion yen ($27.3 billion) shortfall reported by the Ministry of Finance in Tokyo today. Imports rose 25% from a year earlier and outbound shipments gained 9.5%.
Singapore's economy expanded last quarter after a pick-up in manufacturing at the year end, with the government predicting an improvement in overseas demand in 2014 amid a global recovery. Gross domestic product rose an annualized 6.1% in the three months through December from the previous quarter, when it climbed a revised 0.3%, the trade ministry said in a statement today.
European indices were trading in the red while US Futures were trading marginally lower.