FCNR deposits added 35.8% to banks' overseas liabilities in 2013: RBI

An increase in capital flows through Foreign Currency Non-Resident (Bank) (FCNR(B) deposits and foreign currency borrowings has resulted in a 35.8 per cent surge in international liabilities (in rupee terms) of banks located in India during the year ended 31 December 2013, Reserve Bank of India stated in a release on Friday.

Outstanding FCNR deposits with banks increased from $85.33 billion during the first quarter of 2013 to $116.96 billion at the end of the fourth quarter of the year.

Total foreign currency liabilities of banks in India increased from $10.62 billion at the end of December 2012 ($11.13 billion at the end of March 2013) to $14.42 billion at the end of December 2013.

Total international claims on Indian banks increased from $3,095.66 billion as of end-December 2012 to $3,634.56 billion as of end-December 2013. It was $3,312.15 during the first quarter of 2013.

Claims of foreign banks on India in dollar terms, however, declined from $304.9 billion in March 2013 to $263.7 billion at the end of December 2013. This is in tune with a general decline in claims of all banks on all countries from $25,236.7 billion in March 2013 to $25,068 billion at the end of December 2013.

Claims of Indian banks on bank in foreign countries also declined from $48.7 billion as of end-March 2013 to $46.5 billion at the end of December 2013.

As of end-December 2013, the share of US dollar in international liabilities of Indian banks rose to 40.5 per cent from 34.0 per cent a year ago, RBI data related to International Banking Statistics (IBS) of India showed.

The international assets of banks in India also recorded substantial growth of 23.4 per cent over the previous year compared with a decline of 1.4 per cent observed a year ago, RBI noted.

Total international assets of Indian banks increased from $57.34 billion during the first quarter of 2013 to $63.98 billion at the end of the fourth quarter of the year.

During 2013, increase in both international liabilities and assets (LBS) was contributed by increase in exposure towards the US, UK, the UAE, Singapore, Germany and Hong Kong.

The international claims of Indian banks, on immediate risk basis on all other countries grew at a higher rate of 17.4 per cent as at end-December 2013 compared with 15.0 per cent growth in the previous year.

However, the exposure towards banking sector grew at a lower rate (15.6 per cent) while that towards non-bank sector recorded a higher growth (18.4 per cent).

The consolidated foreign claims of Indian banks on ultimate risk basis grew at 14.0 per cent as of end-December 2013 compared to 11.2 per cent observed a year ago, reflected by claims towards Hong Kong, UAE and Canada.

Total international liabilities of Indian banks increased from $111.30 billion in the first quarter of 2013 to $144.24 billion at the end of the fourth quarter of 2013.