Deutsche Bank has invested €571m in its India branch operations to fuel the German investment bank and financial services company’s growth in the country.
This latest capital injection, combined with retained earnings and other statutory reserves, boosts the regulatory capital of Deutsche Bank’s India branches to nearly INR300bn ($3.56bn).
It marks an increase of 33% from the 2023 levels.
Deutsche Bank aims to support India’s economic progress, with a focus on digital transformation, sustainable finance, technology, and infrastructure.
Over the past decade, the German bank is said to have tripled its capital base in India.
According to the bank, its steady capital infusion into India demonstrates the commitment to expanding its business footprint and strengthening the capital adequacy ratio of its branches in the South Asian country.
The new capital will support Deutsche Bank India’s growth across corporate banking, investment banking, and private banking. This capital increase applies solely to the bank’s India branches and does not include other entities operating under the bank in the country.
Deutsche Bank Asia Pacific, EMEA and Germany CEO Alexander von zur Muehlen said: “India is well positioned to benefit substantially from many of today’s most important trends – reshaped supply chains, digitisation of industries, increased geopolitical frictions, global demographic changes, among others.
“Consequently, we see enormous potential for our deeply integrated, well-diversified business in India.”
Deutsche Bank said that it is the largest capital allocation the bank has committed to India in recent years.
The bank has had a presence in India for nearly 45 years. As of 31 March 2024, the bank reported a balance sheet size of INR1.45 trillion ($17.2bn).
In August this year, Deutsche Bank reached settlements with more than 80 plaintiffs involved in the litigation over its acquisition of Postbank and the offer price paid to the former Postbank shareholders.
The settlements, which represent nearly 60% of the total claims in the case, are based on an agreed amount of €31 per share, as proposed by Deutsche Bank.
