Deutsche Bank India net profit rises 25% in FY13

The German lender, which has 17 branches in India, saw its net advances rise 78% from a year earlier to Rs 22,374 cr at the end of March

Deutsche Bank today said its India net profit for FY13 grew by 25 per cent to Rs 1,033 crore, aided by increased lending across businesses. The German lender, which has 17 branches in India, saw its net advances rise 78 per cent from a year earlier to Rs 22,374 crore at the end of March. The growth in advances was on account of increased lending in wholesale and retail businesses.

“Deutsche Bank’s robust growth in profits in a challenging business environment reflects its judicious allocation of resources, deep client relationships and well diversified businesses. The 78 per cent growth in advances is indicative of our strong commitment to India and the clients we serve," said Ravneet Gill, CEO of Deutsche Bank in India, in his post-earnings comments.

“The bank achieved a tight cost-to-income ratio of 38 per cent and net non-performing assets to net advances ratio of 0.13 per cent with a provision coverage ratio of 81 per cent. This reflects the excellent risk and cost culture within the organisation that goes hand-in-hand with our strong growth ambitions,” he added.

The bank’s total income increased by 15 per cent to Rs 3,639 crore during the financial year, while its balance sheet expanded 41 per cent to Rs 40,492 crore at the end of March. Total deposits were up 23 per cent in 2012-13. The results cover the performance of Deutsche Bank’s 17 branches in India and do not include results of other Deutsche Bank Group entities in the country covering businesses relating to equity broking, asset management, primary dealership, corporate finance, outsourcing and the non-banking finance operations.

During the year, Deutsche Bank increased its capital in India by over Rs 1,060 crore. This was the sixth round of capital infusion by the bank since 2007. The capital base in India is currently over Rs 7,000 crore. The foreign lender closed the last financial year with a capital adequacy ratio of 14.1 per cent.