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Deutsche Bank to invest more

Mumbai, Dec. 19: Deutsche Bank will infuse an additional capital of Rs 2,155 crore into its Indian operations.

It will invest Rs 1,470 crore in its branches and pump in Rs 685 crore as equity for its newly formed non-banking finance company (NBFC).

The latest infusion will take the bank’s total capital in India to over Rs 5,700 crore, making it one of the highest capitalised foreign banks in the country.

It follows a capital inflow of Rs 1,125 crore between December 2006 and April.

Officials said the Rs 1,470 crore was meant as Tier-I capital (core capital) of the bank.

The Reserve Bank had recently approved Deutsche Bank’s NBFC.

As foreign banks are barred from acquisitions till 2009, all of them are trying to grow organically and are setting up NBFCs.

Though these companies are not permitted to raise deposits, there are no restrictions on setting up offices. The NBFCs are permitted to lend.

Gunit Chadha, CEO of Deutsche Bank India, said, “India is one of the fastest growing markets for Deutsche Bank and its significance is underscored by this capital infusion. We have tremendous confidence in India and the fresh capital will allow us to offer greater local balancesheet financing for our corporate, institutional and retail clients.”

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