The overseas branches of Indian banks recorded growth of 36.5% in 2013-14, according to data from the Reserve Bank of India (RBI).
Outlook was also positive for foreign banks operating in India, which recorded a 20.6% growth.
Meanwhile, income generated by Indian bank branches overseas declined to INR89.6bn ($1.5bn) from INR93.5bn ($1.7bn) in 2012-13.
On the flip side, total fee income generated by 307 branches of foreign banks in India soared to INR79.6bn ($1.3bn) in 2013-14 compared to INR74.5bn ($1.4bn) in 2012-13.
The report further highlighted that cross-border presence of Indian banks has witnessed a steady expansion in the recent years, with associated rise in employee-strength of their overseas branches and subsidiaries.
UK, Hong Kong, UAE, Singapore, Bahrain and the US were the major source countries of banking services offered by overseas branches of Indian banks, while overseas subsidiaries of Indian banks were mainly present in the UK and Canada.
The number of branches of foreign banks operating in India dropped in 2013-14 after the consistent rise in the preceding four years.