International Banking Statistics of India - June 30, 2001 (Part 1 of 2) - RBI - Reserve Bank of India
International Banking Statistics of India - June 30, 2001 (Part 1 of 2)
Introduction
The current article, second in the series, presents the summary results of International Banking Statistics (IBS) relating to scheduled commercial banks and co-operative banks in India as on June 30, 2001 (Q2 2001). At present, commercial and co-operative banks, which are authorized to deal in foreign exchange and accept non-resident deposits (Indian Rupee and foreign currencies) have been submitting the bank-level data in consolidated manner from across their branches/offices. The foreign branches of Indian banks also submit certain data mainly on international claims for arriving at consolidated position of the Indian banks’ international claims. The IBS data so received from banks are in line with the reporting system of the Bank for International Settlements (BIS). A brief outline of the BIS reporting system of IBS, purpose of IBS, BIS reporting countries, reporting institutions/data coverage, recommendations of the RBI Working Group on IBS, reporting arrangements / system of IBS pursued in India and the distinction/relation between IBS of India and external debt of India have been provided in the first article**.
Coverage
2. Out of 99 reporting banks as on June 30, 2001, 58 are Indian banks with 27 public sector banks, 28 private banks (after merger of Bank of Madura Ltd with ICICI Bank Ltd.) and 3 cooperative banks, and 41 are foreign banks (after merger of Sakura Bank Ltd. with Sumitomo Mitsui Banking Corporation). The coverage and response from the bank branches in Q2 2001 have increased marginally as compared to Q1 2001. However, the coverage is not yet full owing to the fact that large number of branches of public sector and a few private sector banks, in rural and semi-urban areas, are not yet computerised. As mentioned in the previous article, some of these branches maintain nonresident Rupee deposits, like, Non-resident Non-repatriable(NRNR) deposits, Non-resident External Rupee(NRE) deposits, Non-resident Special Rupee(NRSR) deposits and Non-resident Ordinary(NRO) Rupee deposits. The banks are making efforts to capture information from these branches as well. The results based on Locational Banking Statistics (LBS) and Consolidated Banking Statistics (CBS) for the quarter ended June 30, 2001 are presented in the following paragraphs.
International Banking Statistics of India: Quarter ended June 30, 2001
3. In the quarter Q2 2001, the IBS data submitted by the banks relate mainly to the computerised branches of the banks. Other limitations of data are set out in Annex. A set of summary tables has been presented in the text, with detailed statements being provided at the end. Tables 1 to 8 in the text and Statements I to VI are based on LBS statements; and Tables 9 to 11 in the text and Statements VII and VIII are based on CBS statements for the quarter ended June 30, 2001. Certain tables and statements also have been presented with comparative position of Q2 2001 vis-à-vis Q1 2001. The banks have been asked to report, among others, the actual currency of various items of international assets and liabilities; and the amount outstanding in terms of Indian Rupees, as per the practices of respective banks in maintaining their books of accounts (i.e., General Ledgers). The following paragraphs highlight the results of the survey.
4. The outstanding international assets of reporting bank branches amounted to Rs.86,847 crore (i.e. US $ 18,462 million) as on June 30, 2001 as against Rs. 83, 233 crore (equivalent of US $ 17,845) reported as on March 31, 2001 (Table-1). The outstanding international liabilities amounted to Rs.1,56,806 crore (US $33,335 million) as on June 30, 2001, as against Rs.1,52,380 crore (US $ 32,671) as on March 31, 2001. International liabilities in respect of items included in statistics on external debt for the banking sector formed about 73 per cent of the total international liabilities (Table -2) as on June 30, 2001 as against 74 per cent as on March 31, 2001. The component and type-wise detailed data of Table-1 are presented in Statements I and II.
(US $ million) |
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Categories / Items |
Outstanding Amount As on |
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March 31, 2001 |
June 30, 2001 |
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I. |
Items included under External Debt Statistics + |
24,073 |
24,387 |
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1. |
Foreign Currency Non-Resident Bank [FCNR(B)] Schemes |
8,146 |
8,185 |
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2. |
Non-Resident External (NRE) Rupee A/Cs |
6,306 |
6,320 |
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3. |
Foreign Currency Borrowings (Includes Inter-bank borrowing and External Commercial Borrowings) |
262* |
594 |
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other than through ADRs/GDRs, Bonds. etc. |
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4. |
Resurgent India Bonds (RIB) and India Millennium Deposits (IMD) |
9,359 |
9,288 |
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II. |
Items not included under External Debt Statistics due to non availability of data |
90 |
105 |
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1. |
Embassy A/Cs |
10 |
13 |
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2. |
ESCROW A/Cs |
15 |
18 |
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3. |
Foreign Institutional Investors’ (FII) A/Cs |
8 |
11 |
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4. |
QA22 Accounts |
57 |
64 |
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III. |
Non-repatriable Deposits (not included in External Debt due to definitional aspects) |
5,923 |
6,023 |
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1. |
Non-Resident Non-Repatriable (NRNR) Deposits + |
5,546 |
5,600 |
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2. |
Non-Resident Special Rupee (NRSR) Deposits |
72 |
99 |
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3. |
Non-Resident Ordinary(NRO) Rupee Deposits |
305 |
325 |
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IV. |
Non-Debt Credits (not included in External Debt due to definitional aspects) |
982 |
1,027 |
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1. |
American Depository Receipts(ADRs) and Global Depository Receipts (GDRs) |
182 |
231 |
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2. |
Equities of banks held by NRIs |
82 |
70 |
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3. |
Capital of foreign banks/branches in India and certain other items in transition |
718 |
726 |
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V. |
Resident Foreign Currency Liabilities (not included in External |
1,076 |
1,226 |
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Debt due to definitional aspects) + |
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1. |
Exchange Earners’ Foreign Currency (EEFC) A/Cs |
760 |
835 |
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2. |
Resident Foreign Currency (RFC) Deposits |
189 |
221 |
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3. |
Inter-Bank Foreign Currency Deposits and other Foreign Currency |
127 |
170 |
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Deposits of Residents |
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VI. |
Other Items of International Liabilities (not included in External |
526 |
566 |
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Debt due to definitional aspects) |
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1. |
Balances in VOSTRO A/Cs of non-resident banks and exchange houses |
526 |
566 |
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(including term deposits) |
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VII. |
Total international liabilities (including External Commercial |
32,671* |
33,335 |
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Borrowings) [I+II+III+IV+V+VI] |
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Notes: 1. All figures are inclusive of accrued interest. 2. The RBI Reference Rate for Rupee-Dollar exchange as on 31st March 2001 and 30th June 2001 were Rs. 46.64 per US Dollar and Rs. 47.04 per US Dollar, respectively. 3. RIBs of Rs. 17,945 crore and IMDs of Rs. 25,662 crore were mobilized by State Bank of India in August 1998 and November 2000, respectively. 4. QA22 Accounts are opened by foreign nationals / firms, companies or other organisations whose registered or head offices are situated outside India. + : Data as reported under IBS do not cover all branches and are not comparable with data reported by all bank branches under a different set of data. * : Data of March 2001 do not include external commercial borrowings of banks. |
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5. The reporting branches provided details of international liabilities by types of accounts, namely, FCNR(B), NR(E)RA, NR(NR)D, EEFC, RFC and such other deposits. Table-2 presents details of type of accounts in so far as liabilities are concerned. In absolute terms, the banks in India have international liabilities on account of FCNR(B), NR(E)RA, foreign currency borrowings and Resurgent India Bonds and India Millennium Deposits at US $ 24,387 million as on June 30, 2001 as against US $ 24,073 million as on March 31, 2001. Non-repatriable deposits (NRNR, NRSR and NRO) amounted to US $ 6,023 million as on June 30, 2001, while the amount reported by the bank branches as on March 31, 2001 was US $ 5,923 million. Resident foreign currency liabilities amounted to US $ 1,226 million as on June 30, 2001 as against US $ 1,076 million as on March 31, 2001. The rest of the liabilities were relatively insignificant.
6. The data on international assets of banks reveal that "International Loans and Deposits" accounted for 97.0 per cent (Rs. 84,198 crore out of the total assets of Rs. 86,847 crore) as on June 30, 2001 as against 96.6 per cent as on March 31, 2001 (Rs. 80,389 crore out of the total assets of Rs. 83,233 crore). The other two components, namely, "Holding of Securities" and "Others Assets" accounted for only 0.9 per cent (0.7 per cent as on March 31, 2001) and 2.1 per cent (2.7 per cent as on March 31, 2001) respectively (Table -3).
The type-wise details of international assets, based on data of reporting bank branches, as on June 30, 2001 and comparative figures as on March 31, 2001 are presented in Statement - I. It may be seen that among the various types of international assets of banks, the share of "Balances in NOSTRO accounts including balances in term deposits with banks" as on June 30, 2001 was the highest at 61.3 per cent (61.6 per cent as on March 31, 2001), followed by "Foreign Currency Loan to Residents" at 15.6 per cent (16.2 per cent as on March 31, 2001).
7. The data on international liabilities of banks show that the share of "International Loans and Deposits" was the highest at 69.0 per cent of total international liabilities of banks as on June 30, 2001 which shows marginal increase of 0.7 per cent from quarter ended March 31, 2001. The shares of other two components, namely, "Own issues of Securities" and "Other Liabilities" were 28.8 per cent and 2.2 per cent of total international liabilities, respectively (Table - 4). The corresponding figures for last quarter were 29.5 per cent and 2.2 per cent, respectively.
The type-wise details of international liabilities, based on data of reporting bank branches, are presented in Statement -II. Among all types of liabilities, the outstanding amount under Resurgent India Bonds and India Millennium Deposits had the maximum share at 27.9 per cent which showed a decline of 0.7 per cent compared to the position as on March 31, 2001. The share on account of FCNR (B) deposit schemes was 24.6 per cent as on June 30, 2001 as compared with 24.9 per cent in the previous quarter and the NRE deposits accounted for 19.0 per cent, which showed a marginal decline by 0.3 per cent over the previous quarter.
8. The currency composition of international assets and international liabilities shows that the percentage share of the US Dollar, among all the currencies, was the maximum at 80.6 per cent (81.5 per cent as on March 31, 2001) of the total international assets of banks in India. The US Dollar also formed the maximum of the international liabilities of banks in India, accounting for 50.8 per cent (51.3 per cent as on March 31, 2001) of total international liabilities of banks in India. In regard to sectors, the share of banks in international assets as on June 30, 2001 declined by 5.8 per cent from 74.0 per cent as on March 31, 2001. As regards international liabilities, the share of banks registered a decline of 0.9 per cent from 16.8 per cent as on March 31, 2001. On the other hand, the share of non-banking sector was higher as on June 30, 2001 for international assets as well as international liabilities compared with the positions as on March 31, 2001 (Table -5).
The details of currency-wise position of international assets and international liabilities as on June 30, 2001, based on data of reporting bank branches, are presented in Statement -III.
9. In terms of percentage share of international assets of the concerned banks according to country of residence (i.e., the country of residence of the entity, namely, bank and non-bank, with whom banks have financial claims), the USA accounted for the largest share at 37.1 per cent, followed by India at 16.1 per cent, the UK at 15.0 per cent and Singapore at 6.6 per cent (Table -6) as on June 30, 2001. The corresponding shares of these countries as on March 31, 2001 were 35.4 per cent, 16.3 per cent, 16.1 per cent and 6.0 per cent, respectively.
Other prominent countries based on residence principle were Bahamas, Bahrain, Bangladesh, Belgium, France, Germany, Hong Kong, Italy, Japan, Mauritius, Netherlands, Sweden, Switzerland and the UAE. The detailed data on international assets of banks in India as on June 30, 2001, according to country of residence are presented in Statement - IV.
10. With regard to international liabilities of concerned banks according to country of residence (i.e., the country of residence of the entity, namely, bank and non-bank, towards whom banks are liable to meet the claims), the USA was at the top with a share of 17.0 per cent of total international liabilities showing a decline of 0.9 per cent from the previous quarter (Table - 7), followed by the UK at 13.9 per cent (11.5 per cent as on March 31, 2001), the UAE at 13.0 per cent (13.3 per cent), India at 7.8 per cent (7.9 per cent) and Saudi Arabia at 3.7 per cent (4.5 per cent).
The detailed data on international liabilities of banks according to country of residence as on June 30, 2001 are presented in Statement-V. Some prominent countries included were Australia, Bahrain, Canada, France, Germany, Guinea, Hong Kong, Indonesia, Japan, Kenya, Kuwait, Malaysia, Mauritius, Netherlands, Oman, Qatar, Singapore, Spain, Switzerland and Thailand.
11. In terms of percentage share, the Indian banks accounted for the maximum international assets at 86.7 per cent with the increase of 2.4 per cent from the previous quarter, followed by banks incorporated in USA at 3.9 per cent, showing a decline of 1.8 per cent from previous quarter and Australia, Hong Kong and the UK, each having the equal share of 1.5 per cent as on June 30, 2001. The relative position of countries of incorporation of banks in international liabilities is similar to that of international assets (Table - 8).
The detailed data on the position of international assets and international liabilities as on June 30, 2001, according to country of incorporation of banks, are presented in Statement -VI.
12. The data on consolidated international assets (i.e., financial claims) of banks are presented in the CBS statements. The reporting banks in the CBS are classified under three categories, namely, "Domestic Banks" (i.e., in this case, the banks having head office in India), "Inside Area Foreign Banks" (i.e., the foreign banks in India having head office in another BIS-Reporting country) and "Outside Area Foreign Banks" (i.e., the foreign banks in India having head office outside BIS-reporting countries). While the world-wide consolidated claims of domestic banks are arrived at by including claims of their branches operating abroad, the unconsolidated claims are reported for the foreign banks in India. However, there is a distinction between unconsolidated claims for "Inside Area Foreign Banks" and "Outside Area Foreign Banks". In the case of "Inside Area Foreign Banks" the claims are unconsolidated in the sense that their claims only in their respective home (parent) countries in local currencies (of respective home currencies) are considered and not in other currencies and other countries, to avoid double counting (as remaining operations of these branches are captured in the CBS statements of the parent country), the claims of "Outside Area Foreign Banks" are unconsolidated owing to the fact that these banks’ international claims on all countries, including home country, only in respect of operations of branches in the reporting country (i.e., India in this case) are considered. Although the world-wide consolidation takes place at the BIS level for all banks in the BIS reporting countries (i.e., "Domestic Banks" and "Inside Area Foreign Banks"), the claims of "Outside Area Foreign Banks" (i.e., banks from non-BIS countries) remain unconsolidated. The CBS gives country (debtor country) and sector-wise classification of international claims of banks. As mentioned earlier, the international claims of foreign branches of Indian banks form part of the CBS statements of International Banking Statistics. However, of the 95 foreign branches of Indian banks, not all have submitted data to their respective head offices. Based on the data of the reporting branches of banks in India and reporting foreign branches of Indian banks, the CBS statements have been generated. Tables 9, 10 and 11 and Statements VII and VIII have been prepared out of the CBS statements. The following paragraphs highlight the important features in the CBS statements.
13. The international assets (i.e., financial claims) of banks, as per CBS statements, classified according to country of ultimate risk (debtor country) reveal (Table- 9) that reporting banks’ claims on India accounted for the largest share at 36.7 per cent of total international claims as on June 30, 2001, compared with 37.1 per cent as on March 31, 2001. This is followed by the USA at 23.5 per cent (25.4 per cent as on March 31, 2001), the UK at 6.6 per cent (6.7 per cent) and Germany at 3.3 per cent (3.8 per cent).
The residual maturity–wise details of international claims of banks (as per CBS statement) according to country of ultimate risk (i.e., debtor country) as on June 30, 2001 are provided in Statement -VII.
14. The classification of international claims of banks (as per CBS statement) on debtor countries according to sector is presented in Table-10. In the total international claims as on June 30, 2001, the shares of "Banks", "Non-Bank Public Sector" and "Non-Bank Private Sector" were respectively 62.2 per cent, 4.1 per cent and 33.5 per cent. The corresponding shares as on March 31, 2001 were 64.6 per cent, 5.1 per cent and 30.3 per cent, respectively.
The classification of international claims of banks (as per CBS statement) according to country of ultimate risk (i.e., debtor country) and sector as on June 30, 2001 is provided in Statement –VIII.
15. The classification of international claims according to residual maturity is presented in Table -11. As on June 30, 2001, the residual maturity of "Up to and including 6 months" accounted for 54.6 per cent, an increase of 4.5 per cent compared to the position as on March 31, 2001, followed by the share of "Unallocated" at 22.4 per cent (25.3 per cent as on March 31, 2001).
Notes: 1. Residual maturity "Unallocated" comprises maturity not applicable (eg. for equities) and maturity information not available from reporting bank branches.
2. Figures in brackets represent percentages to total international assets.
IBS June 2001 : Limitations of data reported by banks
Data reported by the 99 banks (after the merger of Bank of Madura Ltd. with ICICI Bank Ltd. and Sakura Bank Ltd. with Sumitomo Mitsui Banking Corporation) for the quarter ended June 30, 2001 have the following limitations.
- Data have not been received from all concerned bank branches of 99 banks due to lack of infrastructure (non-computerised branches accepting NR Deposits) and other constraints for the period ended June 30, 2001.
- In certain cases, country, currency, maturity and sector details have not been reported by banks. Accordingly, suitable footnotes have been incorporated in the respective statements.
- The information on "country of ultimate risk" is, at present, not captured by most of the banks and the banks in many cases have used the country of residence as the "country of ultimate risk". However, banks have been instructed to capture such information in their information system on a continual basis.
- Not all the 95 foreign branches of 9 Indian banks have submitted data through their head offices for the purpose of compilation of consolidated banking statistics (CBS).
- The international liabilities, as per definition in the BIS guidelines, have been collected and compiled. However, all items of liabilities of banks towards non-residents furnished in LBS are not strictly comparable with the external debt accounted for by the banking sector in India. For example, nonresident non-repatriable deposits accepted by the banks, non-debt credit items, such as, American Depository Receipts(ADRs), Global Depository Receipts(GDRs), capital of foreign banks in India, etc, do not form part of external debt but these are included in LBS on the basis of the definition of external liabilities of banks.
* Prepared in the Banking Statistics Division of the Department of Statistical Analysis and Computer Services.
** The first article on "International Banking Statistics of India- March 31, 2001" was published in October 2001 issue of the Reserve Bank of India Bulletin.
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