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| Credit Suisse infuses Rs 794 crore in NBFC arm |
| BS Reporter / Mumbai Jan 07, 2009, 00:59 IST |
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Financial services major, Credit Suisse today said that it has infused a capital of Rs 794 crore (approx $164 million) in wholly owned non-banking finance company (NBFC) subsidiary, Credit Suisse Finance (India). Through this investment the company intends to expand its wealth management, investment banking and asset management businesses in India.
Though its NBFC arm in India, the Swiss firm caters to the corporate and individual investors in asset backed financing, securities backed financing, Initial Public Offering (IPO) lending and pre-IPO funding. With this investment, the total capital base of Credit Suisse Finance would go up to Rs 827 crore (approximately $170 million).
According to sources, shares of Credit Suisse jumped 12 per cent to 32 francs on January 5, recording the biggest gain in past four weeks. The move came close on heels of the bank’s move to offload a stake in its Global Investors business to Aberdeen Asset Management for $363 million during the year end.
The stake sold by Credit Suisse includes assets under management of about $68 billion and the company’s divisions across Europe, the US and Asia, Earlier in December 2008, Credit Suisse had announced its plans to slash 11 per cent of its workforce after suffering losses of about $2.5 billion during the previous two months.
“Credit Suisse is in a strong position, with a robust integrated business model, a sound liquidity position and one of the strongest capital bases of any global bank. This capital infusion is a very clear statement of our commitment to the growth of our business in India,” said Managing Director and Country Head of Credit Suisse in India, Mihir Doshi.
In an effort to grow its NBFC operations in India, last year, the company had taken over Chennai based NBFC, Bokdia Marketing and Finance.
“Our strategy for India remains clear and consistent, as we will continue to invest selectively in the growth of wealth management, investment banking and asset management business,” added Doshi.
In 2007, Credit Suisse launched its India brokerage operations and obtained a merchant banker license. It was granted a portfolio manager status in 2008 to offer investment services to high net worth individuals, family-owned businesses and entrepreneurs in India. The company’s Centre of Excellence in Pune, which opened in 2007, employs 1,500 people to support business activities globally.
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