Despite doubling of NPAs, Deutsche India FY19 net soars 32 per cent to Rs 1,199 crore

The local arm of the largest German bank's net non-performing assets ratio nearly doubled to 1.44 percent during the reporting year.
For representational purposes (File Photo | EPS)
For representational purposes (File Photo | EPS)

MUMBAI: Deutsche Bank India Tuesday reported a 32 per cent rise in net income from its branch operations at Rs 1,199 crore for FY19, despite a massive spike in bad loans.

The local arm of the largest German bank's, which operates through a branch model, net non-performing assets ratio nearly doubled to 1.44 per cent during the reporting year.

The lender, which has 17 branches in the country, infused Rs 3,846 crore in fresh capital during the reporting year, taking the total capital base to over Rs 15,000 crore.

Its advances rose 23 per cent, much faster than the systems 13 per cent credit growth, to Rs 48,270 crore, while the deposit growth came in at 19 per cent, the bank said in a statement.

Its new chief executive Kaushik Shaparia said it was a "difficult macroeconomic environment" in the country.

He further said the new capital infusion should be seen as an affirmation of the parent's commitment to deepen its presence in the country.

Following the fresh capital infusion and higher profit, the bank's overall capital adequacy has increased to 16.03 per cent from 15.22 per cent in the year-ago period.

Operating profit moved up 27 per cent to Rs 2,487 crore on higher advances, while total income grew 21 per cent to Rs 6,891 crore.

The bank has improved the cost-to-income ratio to 43 per cent as against 46 per cent in the year-ago period.

The profit per employee also moved up by 41 per cent to Rs 71.81 lakh.

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