Barclays invests $220mn more in India

UK-based financial services provider Barclays Plc has infused $150 million in its investment banking business in India, and another $70 million to ramp up its commercial and corporate banking activities. The total investment in Indian operations now stands at $300 million.

As part of its growth strategy, the bank has already approached the
Reserve Bank of India (RBI) to increase its footprint within India by adding more branches. Barclays, however, is not considering an immediate foray in retail banking in India.

Apart from catering to multinational and larger corporates, the bank now
wants to tap the small and medium enterprises (SMEs) in India.

David Roberts, chief executive of the bank's international, retail and commercial banking operations and a board member, said Barclays is now aiming at 50:50 ratio between its domestic and international business activities. The current ratio of UK-based business to international business stands at 40:60. India alone contributes approximately 25% of the bank's
Asia-Pacific business.

Out of the $70 million investment planned for commercial banking in India, a major chunk would be channelised towards recruitment of around 150 employees of which 40 are to be recruited in 2006.

Robert Morrice, chief executive (Asia Pacific) said Barclays foresees increased lending opportunities in loan syndication, derivatives, underwriting and acquisition financing in India.