Barclays PLC to invest Rs 2,300 crore in India to support business growth

Barclays Bank PLC is investing Rs 2,300 crore (£210 million) in its Indian operations to support business growth in one of the world's fastest-growing economies.

 

The capital infusion will enable the bank to expand its reach to a wider client base, including corporate and financial sponsor clients and ultra-high-net-worth individuals in India, Barclays Bank said in a statement.

 

The latest capital commitment follows a significant injection of over Rs 3,000 crore (£300 million) in 2021. With this additional investment, the bank’s total invested capital in India will increase to over Rs 12,400 crore (£1,100 million), reflecting a steady and sustained growth strategy.

 

 

Barclays India's financial position 

According to India Ratings, Barclays India’s capital adequacy ratio (CAR) stood at 15.93 per cent at the end of March 2024 (FY24). As per Basel III guidelines, the bank is required to maintain a minimum Tier-1 capital ratio of 11 per cent.

 

Its assets in India stood at Rs 53,910 crore at the end of FY24. A major portion of Barclays India’s loans consists of term loans (49.2 per cent in FY24), bill discounting (35.0 per cent), and working capital loans (15.8 per cent), India Ratings said.

 

Barclays’ growth strategy in India

Pramod Kumar, chief executive officer, Barclays Bank PLC, and head of investment banking, India, said, “The additional capital allows us to further strengthen our position as a trusted financial partner to clients, particularly in sectors where we see significant growth opportunities in India.”

 

The bank's core business lines include financing solutions, mergers and acquisitions (M&A) advisory, debt capital markets, risk management solutions, and cash, trade, and working capital services. The bank also provides investment, lending, and wealth advisory solutions to ultra-high-net-worth individuals (UHNW) and family offices.

 

In FY24, Barclays India’s exposure to non-banking financial institutions and trading segments stood at Rs 16,700 crore. Its exposure to the infrastructure sector, which was limited to highly rated corporates, was about Rs 16,900 crore, the rating agency said.