BNP Paribas invests Rs 290 cr in local arm

French financial services group, BNP Paribas, has infused Rs 290 crore of capital in its Indian operations, taking the total capital base of the bank in India to Rs 1,000 crore.

In the last three years, the bank has infused Rs 718 crore as capital. The bank's capital adequacy at the end of March, 2006 stood at 11.61 per cent.

"This new capital infusion, demonstrates our commitment to growing the activity and presence of BNP Paribas in India. With our increased equity base, we will be better placed to support our corporate client's fast expansion and scale up our fixed income and treasury operations where the bank is already a leader. While this constitutes an important move for the bank, BNP Paribas has further growth plans for India" said Frederic Amoudru, chief executive and country head, BNP Paribas India.

BNP Paribas has eight branches in India. As of March 2006, total deposits stood at Rs 1,847 crore and advances at Rs 1,853 crore. It has reported a net profit of Rs 19 crore in 2005-06 against Rs 14.75 crore a year earlier.

Total revenues in 2005-06 were Rs 296.09 crore with treasury operations contributing Rs 122.15 crore, almost double from Rs 68.59 crore in the previous year.

The share of other banking operations in total revenues was Rs 173.94 crore against Rs 175.24 crore a year earlier.

The BNP group is also present in asset management and insurance businesses in India through strategic alliances with Sundaram Mutual and SBI, respectively.

Group subsidiary, BNP Paribas India Solutions Private, caters to the development of information technology and backoffice re-engineering for the group's worldwide operations.