Barclays doubles FY06 net profit to Rs 120 cr

Barclays India nearly doubled its net profit to Rs 120 crore in 2005-06 from Rs 62.5 crore a year earlier on the back of a strong growth in key business segments, including investment banking and risk management.

Barclays' revenues in India grew by 82 per cent to Rs 270 crore and its net non-performing assets (NPAs) ratio continues to be nil. Operating profit surged 86 per cent to Rs 220 crore in 2005-06, though costs increased by 65 pert cent to Rs 51.8 crore from Rs 31.4 crore in 2004-05.

In addition to the capital infusion made earlier this year, Barclays plans to increase its geographical reach in the country and has sought the Reserve Bank of India's permission to open branches in key centres.

"We will continue to see dynamic growth in India as companies access the capital markets at home and overseas. Barclays has led some of the largest foreign currency convertible bond issues from India in 2005-06. There is also increased demand for risk management products to hedge against risks such as exchange rate risk and interest rate risk," noted Madan Menon, co-CEO of Barclays Capital in India.

Barclays had doubled its investment in India by infusing $150 million earlier this year to support growth of its investment banking business.