Deutsche Bank adds £46.85 million capital to India operations

The capital injection represents a 33 per cent increase in the bank’s capital buffer over 2023 levels.

• EasternEye
• 07 November, 2024

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By: EasternEye

DEUTSCHE Bank announced on Wednesday an additional capital infusion of £46.85 million into its Indian operations.

This recent allocation is the bank’s largest to India in recent years and is intended for expanding across various business lines, including corporate banking, investment banking, and private banking, according to a statement from Deutsche Bank.

Operating in India for 45 years, Deutsche Bank reported a balance sheet size of £1.33 billion as of 31 March 2024, establishing itself as one of the country’s largest foreign banks with 17 branches.

The capital injection represents a 33 per cent increase in the bank’s capital buffer over 2023 levels, bringing the regulatory capital of Deutsche Bank AG’s India branches to approximately £274.84 million. The bank noted that its regulatory capital in India has tripled over the past decade.

“India is well positioned to benefit substantially from many of today’s most important trends—reshaped supply chains, digitisation of industries, increased geopolitical frictions, and global demographic changes, among others,” said Alexander von zur Muehlen, Deutsche Bank’s CEO for Asia Pacific, Europe, the Middle East, and Africa, and a member of its management board.

Von zur Muehlen added that India remains a critical growth market for Deutsche Bank, which is increasing its capital allocation to expand and deepen its presence in the country.

The bank reaffirmed its commitment to supporting India’s growth, particularly in areas like digital transformation, sustainable finance, technology, and infrastructure. Kaushik Shaparia, Deutsche Bank’s India CEO, described the infusion as a strong indication of confidence in the bank’s business model and growth potential in India.

The capital will be used solely for Deutsche Bank’s branches in India, excluding other entities operating within the country. Previous capital infusions from the bank included £24.73 million in 2020 and £34.81 million in 2019. In FY23, Deutsche Bank’s profit after tax saw a slight decline to £13.44 million, with a capital adequacy ratio of 15.41 per cent as of 31 March 2023.

(With inputs from PTI)