The fresh capital will be used to support further expansion of Deutsche India, the bank said. The German lender operates 17 branches across India mainly servicing corporate, investment banking and private banking clients.
The bank did not say how much its capital adequacy will improve after this latest infusion. At the end of March its capital adequacy stood at 14.93%.
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.
Provisions including those for non performing assets (NPAs) rose 15% to Rs 1483 crore from Rs 1288 crore a year earlier. Other income fell 40% to Rs 732 crore from Rs 1215 crore a year earlier.
Gross NPAs remained unchanged at 2.91% of the bank’s loan book. The bank’s loan book increase 6% to Rs 51,910 crore from Rs 48,999 crore a year earlier.
“The incremental capital being injected into our India franchise 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,” said Kaushik Shaparia, chief country officer, Deutsche Bank India.
The bank completes 40 years since it opened its first India branch in Mumbai. Total assets of the bank in India stood at Rs 1.2 lakh crore as of March 2020.