German lender Deutsche Bank infuses Rs 2,700 crore into Indian Branches

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Among the lenders Deutsche Bank is the largest lender in Germany, which has infused Rs 2,700 crore into its Indian branch operations by having its total investment into Indian branches to Rs 18,200 crore. 

In less than two years, an infusion made by the Frankfurt-based bank into its Indian branch is for the second time. In early 2019 it invests Rs 3,800 crore into its Indian branch. The bank said that they will use the fresh capital to support further expansion of Deutsche Bank in India. Across India, the German lenders operate 17 branches mainly servicing corporate, investment banking, and private banking clients.

Bank didn’t reveal anything about the improvement in capital adequacy after the latest infusion made by the bank. The capital adequacy stood at 14.93% at the end of March. Results for the fiscal ended March 2020 on the bank’s website showed that its profit fell 14% to Rs 1031 crore.

Results for the fiscal ended March 2020 on the bank’s website showed that its profit fell 14% to Rs 1031 crore from Rs 1199 crore in fiscal 2019 largely due to a rise in provisions and as fee income fell. Non-Performing Assets (NPAs) including for Provisions increased up to 15 percentage to Rs 1483 crore from Rs 1288 crore a year earlier. A year earlier other income fell 40% to Rs 732 crore from Rs 1215 crore. Gross NPAs remained the same at 2.91% of the bank’s loan book. The bank’s loan book rose 6% to Rs 51,068 crore from Rs 48,270 crore a year earlier.

Kaushik Shaparia, Chief country officer of Deutsche Bank said “The incremental capital being infused into our India franchise for us this is a strong validation of our confidence in our business model and potential in this country and is demonstrative of our intent to further deepen our presence here. The recent months have thrown up opportunities for us to work ever more closely with our clients and support them with best-in-class services and advice in steering through the current operating environment,”. In India, the bank the total assets stood at Rs 1.2 lakh crore in March 2020. The bank completes 40 years since it opened its first India branch in Mumbai.

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