(Bloomberg) -- Deutsche Bank AG made its largest capital allocation to India in recent years by increasing its regulatory capital 33% to 300 billion rupees ($3.56 billion) from 2023, as it bets on the growth potential of the world’s most populous nation.
The German lender has infused 51.13 billion rupees in the India arm to expand its corporate banking, investment banking, and private banking operations, according to a statement from the firm.
Regulatory capital is what banks must hold in their balance sheets to comply with regulations.
“This incremental capital into our India franchise is a strong validation of confidence in our business model and potential in this country,” said Kaushik Shaparia, CEO, Deutsche Bank Group, India.
Deutsche Bank has tripled its capital investments in India in the last decade, as it looks to benefit from the growth in digital transformation, sustainable finance, technology and infrastructure development.
Deutsche Bank improved its ranking in arranging rupee bonds for Indian companies, moving up to 17th place from 39th last year. The bank was an arranger in one of the largest private credit deals last year, helping Goswami Infratech Pvt., a Shapoorji Pallonji group company controlled by tycoon Shapoor Mistry, raise 143 billion rupees ($1.7 billion).
Competition among foreign lenders in India has increased with Japanese banks like Mitsubishi UFG Financial Group Inc., and Sumitomo Mitsui Financial Group Inc. becoming top arrangers of India’s offshore loans in the last few years. HSBC Holdings Plc is doubling down on its business in the country and Standard Chartered Plc is honing its strategy to attract rich customers for its wealth business in India.
--With assistance from Harry Suhartono.
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