Lok Sabha Question No. 3670 (UNSTARRED), answered on 2018-03-16
Subject: PSBs Branches in Foreign Countries
Ministry: FINANCE
Asked by: PRATAPRAO GANPATRAO JADHAV, ASHOK MAHADEORAO NETE

## GOVERNMENT  OF INDIA

## DEPARTMENT  OF FINANCIAL  SERVICES LOK SABHA

## MINISTRY OF FINANCE

## UNSTARRED QUESTION NO. †3670

TO BE ANSWERED  ON THE 16 TH  MARCH 2018/ PHALGUNA 25, 1939 (SAKA)

## PSBs Branches in Foreign Countries

## †3670.  SHRI PRATAPRAO  JADHAV: SHRI ASHOK MAHADEORAO NETE:

Will  the Minister  of FINANCE  be pleased to state:

- (a) the number of branches  of Public  Sector Banks (PSBs) operating  in foreign  countries along with  the number out  of them  running  in losses, bank  and country-wise;
- (b)the  details   of  amount   to  be  paid  by   these  PSBs  to  the  Government   of  the  respective countries;
- (c) whether   the  Government   has  directed   all  the  PSBs  to  regulate   the  network   of  the domestic  and foreign  branches  in view  to strengthen  their  financial  position  and if so, the details thereof;
- (d) whether  the Government  has advised the banks  to close their  branches  running  in loss and if so, the names of the banks  which  have taken  initiative  in this regard and the number  of branches  closed so far location  and bank-wise;  and
- (e) whether   the  Government   proposes  to  take   any   other   steps  to  revive   the  branches running  in losses and if so, the  details  thereof  and if not,  the reasons therefor?

## ANSWER

The Minister  of State in the Ministry  of Finance (SHRI SHIV PRATAP  SHUKLA)

- (a): As per data reported  by  PSBs, 159 branches  of PSBs are operating  in foreign  countries,  of which  41 branches  were  in loss in the financial  year  (FY) 2016-17. Bank-wise  and country-wise details  of the branches  in loss in  FY 2016-17 are at  Annex-1.
- (c)  to  (e):  A  reforms   agenda   based  on  recommendations made by Whole-Time  Directors  and senior   management   of  PSBs  has been  referred   by   the  Government   to  PSBs  for  appropriate action  as per approval  of bank  Boards.  The agenda covers, inter alia, rationalisation of overseas operations  for cost efficiencies  and synergies  in overseas markets,  based on competitive  strength and  viability, and  a  differentiated   banking   strategy   to  leverage   bank's   competitive   advantage, which  may  include  branch  network  rationalisation for a strong  regional  connect.
- (b): As per data reported  by  PSBs, details  of amount  to be paid by  PSBs to the Government  of their  respective  location  are at  Annex-2.

All  PSBs having  foreign  branches  ( viz., Allahabad  Bank,  Bank of Baroda,  Bank of India,  Canara Bank, IDBI  Bank, Indian  Bank, Indian  Overseas  Bank, Punjab  National  Bank, State Bank of India,  Syndicate  Bank,  UCO  Bank and Union  Bank of India) have jointly  taken  the initiative  to prepare   a note in mutual  consultation  for rationalisation of  their   foreign   branches.   Action   on closure  of branches  identified  by  banks  is at various  stages.

Banks take  a view  on branch  operations,  including  their  revival,  based on commercial considerations.

## Lok Sabha Unstarred  Question  no. †3670,  to be answered on 16.3.2018

Bank-wise and country-wise  details of PSB branches operating  in foreign countries, which were in loss in FY 2016-17

|   S.No. | Country             |   No. of branches |
|---------|---------------------|-------------------|
|       1 | Australia           |                 1 |
|       2 | Bahamas             |                 2 |
|       3 | Bangladesh          |                 1 |
|       4 | Cambodia            |                 1 |
|       5 | ChannelIsland       |                 1 |
|       6 | France              |                 1 |
|       7 | China(HongKong)     |                 6 |
|       8 | Kenya               |                 2 |
|       9 | Myanmar             |                 1 |
|      10 | Oman                |                 1 |
|      11 | Singapore           |                 2 |
|      12 | SouthAfrica         |                 4 |
|      13 | SriLanka            |                 4 |
|      14 | Thailand            |                 1 |
|      15 | UnitedArab Emirates |                 5 |
|      16 | UnitedKingdom       |                 7 |
|      17 | Vietnam             |                 1 |

Source:  Banks

|   S.No. | Bank               |   No. of branches |
|---------|--------------------|-------------------|
|       1 | Bank ofBaroda      |                 7 |
|       2 | Bank ofIndia       |                 8 |
|       3 | CanaraBank         |                 4 |
|       4 | IDBI Bank          |                 1 |
|       5 | IndianBank         |                 1 |
|       6 | IndianOverseasBank |                 5 |
|       7 | PunjabNationalBank |                 2 |
|       8 | StateBank ofIndia  |                 9 |
|       9 | SyndicateBank      |                 1 |
|      10 | UCOBank            |                 1 |
|      11 | UnionBankof India  |                 2 |

Source:  Banks

Lok Sabha Unstarred  Question  no. †3670,  to be answered on 16.3.2018

## Annex-2

| S.N.   | Bank          | Countrywith foreignbranches of the bank   | Amounttobe paid by the bank to the Governmentof the countryin column(3)   | Amounttobe paid by the bank to the Governmentof the countryin column(3)                              |
|--------|---------------|-------------------------------------------|---------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------|
|        |               |                                           | Amount in crore Rs.                                                       | Details                                                                                              |
| (1)    | (2)           | (3)                                       | (4)                                                                       | (5)                                                                                                  |
| 1      | IDBI Bank     | Dubai                                     | 0.37                                                                      | ValueAddedTax(VAT)                                                                                   |
| 2      | CanaraBank    | Bahrain                                   | 0.08                                                                      | Socialinsuranceand renewalof commercialregistration                                                  |
| 3      | CanaraBank    | Dubai                                     | 0.09                                                                      | Registrationfee                                                                                      |
| 4      | CanaraBank    | China(HongKong)                           | 0.002                                                                     | Business Registration fee                                                                            |
| 5      | Bank ofIndia  | USA                                       | 2.29                                                                      | Quarterly assessmentfee payableto NewYorkStateDepartmentof FinancialServices                         |
| 6      | Bank ofBaroda | Mauritius                                 | 0.33                                                                      | Tradefees and propertytax                                                                            |
| 7      | Bank ofBaroda | Oman                                      | 0.10                                                                      | Commercialregistration renewal and municipality charges                                              |
| 8      | Bank ofBaroda | USA                                       | 3.02                                                                      | Payableto NewYorkState Departmentof FinancialServicesfor generalassessmentcovering operatingexpenses |

Source: Public Sector Banks