PSU banks to review performance of foreign branches quarterly: Government

New Delhi: Public sector banks have been asked to review the performance of overseas branches on a quarterly basis to ensure profitable functioning, Parliament was informed today.

"The Government has advised the PSBs operating their branches at Overseas Centres to strengthen the mechanism for evaluation of performance of overseas offices in order to achieve the optimum utilisation do capital in their offices," Minister of State for Finance Namo Narain Meena said in a written reply to the Lok Sabha.

"These banks have also been advised to review the performance of their overseas offices on some select performance parameters on a quarterly basis," he added.

Meena said that while in the financial year 2011-12, no PSBs functioning abroad reported losses, at the end of March 2012, eight overseas branches of three PSBs have posted loss.

Replying to a query, Meena said that the RBI has recommended proposals of three foreign banks for opening a branch each in India.

As on August 1, 2012, the minister said, 41 foreign banks were operating 324 branches in India.