Deutsche Bank infuses Rs 2,700 crore in India operations for expansion
MUMBAI: German lender Deutsche Bank on Wednesday announced a capital infusion of Rs 2,700 crore into its India operations for expansion across segments.
This is the second time in less than two years that the bank has infused money into local operations consisting of 17 branches, after the Rs 3,800 crore investment in early 2019.
Banks have to set aside capital for every new loan that they make and also when the loan slips into non-performing territory.
A bank statement said the fresh capital will be used to support further expansion of Deutsche Bank India across all of its businesses, including corporate banking, investment banking, and international private banking that have been consistently growing over the years.
Its chief country officer Kaushik Shaparia said the incremental capital injection should be seen as a strong validation of the lender's confidence in the business model and potential in India.
It is also "demonstrative of our intent to further deepen our presence here," he said, adding that the recent months have thrown up opportunities to work ever more closely with clients and support them with services and advice in steering through the tough environment.
The capital adequacy ratio for the bank, which has been present in India since 1980, stood at 14.93 per cent as of March 31, 2020, which will go up post the infusion.
Total capital deployed by Deutsche Bank in its India branches has now increased to Rs 18,200 crore and the overall assets stood at Rs 1.2 lakh crore as of March 31, 2020, the statement said.