Deutsche Bank announces fresh capital infusion of Rs 5,113 cr to expand ops in India

According to a statement from the German lender, this capital boost will support expansion across key segments, including corporate, investment, and private banking, PTI reported.

Deutsche Bank, which has been operating in India for 45 years with a balance sheet size of Rs 1.45 lakh crore as of March 31, 2024, runs 17 branches nationwide, positioning it among India’s leading foreign banks.

The new capital marks a 33% increase in its capital buffer from 2023 levels, raising the regulatory capital of its Indian branches to nearly Rs 30,000 crore—a figure that 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. Consequently, we see enormous potential," said Alexander von zur Muehlen, CEO for Asia Pacific, Europe, the Middle East and Africa, and Germany, the report said.

Muehlen, also a management board member, emphasized India’s significance as a growth market and affirmed the lender’s increased capital allocation aims to deepen its Indian presence.

Deutsche Bank reiterated its commitment to supporting India's growth in areas like digital transformation, sustainable finance, and infrastructure development.

Kaushik Shaparia, Deutsche Bank’s India CEO, described the capital infusion as a strong validation of confidence in its Indian business model and growth potential.

The statement clarified that the new funds apply solely to the bank's Indian branches, excluding other local entities.

Previously, Deutsche Bank had infused Rs 2,700 crore in 2020 and Rs 3,800 crore in 2019 into its India operations.

For FY23, its profit after tax slightly decreased to Rs 1,467 crore, with capital adequacy standing at 15.41% as of March 31, 2023.