The total international assets of banks in India increased to Rs 1,08,112 crore [Rs 1,081.12 billion ($ 23,704 million)] at the end of December 2003, registering a rise of Rs 4,236 crore (Rs 42.36 billion) over the same period a year ago.
The considerable rise in international assets was mainly due to the increase in outstanding export bills drawn on non-residents by residents, the Reserve Bank of India said in its June bulletin released in Mumbai on Saturday.
The banks in India, including public, private, co-operative and foreign banking entities, continued to prefer foreign currency lending in the domestic market, it said.
"The share of foreign currency loans to residents in total international assets was at 38.6 per cent at the end of December 2003 (33.1 per cent in December 2002 and 36.4 per cent in September 2003), the central bank added.
RBI said the total international liabilities of these banks stood at Rs 2,10,283 crore [Rs 2,102.83 billion ($46,105 million)], which increased by Rs 18,578 crore (Rs 185.78 billion) over the same period one year ago, but decreased by Rs 5,318 crore (Rs 53.18 billion) over the September quarter.
The decrease over September quarter was mainly due to the redemption of Resurgent India Bonds while the increase over December 2002 may be attributed to the increase in foreign currency borrowings, foreign currency non-resident (bank) deposits and ADRs or GDRs, it said.
Among the components of international liabilities, the non-resident external rupee deposits held the maximum share at 33.6 per cent.
RBI said the continuous increase in outstanding amount for NRE rupee deposit schemes, compared to previous quarters, could be attributable to maturity proceeds under non-resident non-repatriable accounts, which are eligible for crediting to the account holders' NRE rupee deposit accounts.
The foreign currency borrowings of banks in India increased to Rs 27,379 crore (Rs 273.79 billion) from Rs 23,025 crore (Rs 230.25 billion) in the previous quarter and Rs 12,745 crore (Rs 127.45 billion) in December 2002.
The consolidated international claims of banks in India on other countries stood at Rs 80,085 crore (Rs 800.85 billion), recording a fall of Rs 6,872 crore (Rs 68.72 billion) over September 2003. As compared to December 2002, the claims decreased by Rs 9,983 crore (Rs 99.83 billion).
The comparative positions of claims of Bank for International Settlements reporting countries on India and claims of Indian banks on other countries revealed that the total international claims on India stood at $30.3 billion, which were higher by $13 billion than the claims of Indian banks on other countries at end December 2003.
RBI said the share of lending to "bank" and "non-bank public" sectors in international assets of banks, continued to decrease and correspondingly the share of lending to "non-bank private" sector continued to increase.
