Barclays Bank Plc infuses Rs 3,000 cr in India ops to bolster business

Barclays Bank PLC has infused about Rs 3,000 crore as capital in its banking operations in India (Barclays India) to accelerate its growth in corporate & investment banking, and private clients businesses.

The expansion in Tier-1 capital reinforces Barclays’ commitment to India. With this infusion, the bank’s total invested capital in the country will increase to over Rs 8,300 crore, the bank said in a statement.

According to India Ratings, as of Q1FY22, Barclays India’s Tier-1 ratio stood at 14.71 per cent (FY21:14.23%, FY20: 14.87%). This provides the required capital buffers against unexpected credit losses from stressed sectors, if and when the losses materialise.

Barclays has a market leading business position in the country with advisory and risk management businesses within the investment bank, the entire suite of corporate banking capabilities, including cash management and trade finance. There has been significant growth of assets under management by the private clients business for several of India’s high and ultra high networth individuals and family offices.

Barclays India mainly lends to corporates with exposures largely to highly-rated clients and subsidiaries/operations of multi-national companies. The majority of Barclays India’s loans constitute bill discounting (42 per cent of the loan portfolio in FY21) and working capital loans (43%), which are mostly short term. The bank’s loan book reduced by 22 per cent (year-on-year basis) to Rs 8,050 crore in FY21, largely led by higher repayments in the shorter tenure of the book, according to India Ratings.

Jaideep Khanna, head of Barclays, Asia Pacific and country CEO, India, said the bank has ambitious growth aspirations, and looks to leverage the attractive opportunities that the present situation offers. As economic activity gathers momentum, there is increased demand for capital from clients. The bank is well placed to support their objectives and remains committed to working closely with them, he added.

As part of its expansion plans in the country, Barclays Bank PLC also inaugurated its International Banking Unit branch at GIFT City in Gujarat in February 2021.