Deutsche Bank increases capital base in India

Injects Rs 1,054 crore to fund growth plans

Deutsche Bank today said it has increased its capital base in India by Rs 1,054 crore (or $194 million) to finance its growth plans here.

Following the latest round of capital infusion, the total capital of the bank in India is now close to Rs 7,000 crore. Its capital adequacy ratio also improved to around 16%. The capital base pertains only to the India business lines of the bank.

This is the sixth time the German bank has injected capital in India since 2007 and second time this calendar year.

"The capital increases reflect the importance of the India franchise to Deutsche Bank's global growth plans. India is one of the most significant markets for Deutsche Bank globally with market leading transaction banking and investment banking businesses and a rapidly growing asset and wealth management and retail footprint," Ravneet Gill, chief executive officer at Deutsche Bank in India, said in a statement.

Deutsche Bank's India branches' profit after tax was Rs 823 crore in 2011-12. It has been growing with a compounded average growth rate of 30% over the last five years.

"This capital infusion will enable us to further deepen our client franchise in India. In particular, we will further expand our transaction banking and retail banking businesses," Gill said.

The foreign lender currently has 17 branches in India.