Barclays Bank has infused £300 milllion capital to expand its India operations. This is the single largest infusion made since inception - the last large investment was £54 million in 2009-10. With this investment, the bank’s total capital deployed in India increases to £830 million. “We have ambitious growth aspirations, and the investment will help accelerate that as we look to leverage the attractive opportunities that the present situation offers,” said Jaideep Khanna, head of Barclays Asia-Pacific and country CEO. “As economic activity gathers momentum, there is increased demand for capital from clients. We are well placed to support their objectives and remain committed to working closely with them,” added Khanna.
According to a spokesperson, the money is for the growth of the corporate investment bank and wealth management business. The British bank has four branches and a presence across six cities. As part of its expansion plans in India, Barclays Bank Plc also inaugurated its international banking unit (IBU) branch at GIFT City in Gujarat in February this year.
The spokesperson added that the 55% jump in capital base will enable the lender to significantly expand its exposure to Indian clients. RBI rules cap a bank’s exposure to a single borrower, a business group and capital markets at 20%, 25% and 40% of their capital respectively. In 2019, the RBI came out with a large exposure framework, which made it difficult for foreign banks to have back-to-back arrangements with their head office for exposures in India as these too came under the ceiling.
