LONDON, – Barclays reported better than expected third quarter earnings on Thursday, as it followed Wall Street rivals in reaping bumper investment banking fees from a surge in trading and advisory mandates.
The British bank reported profit before tax of 2 billion pounds ($2.76 billion) for the July-September period, better than the 1.6 billion pounds average of analysts’ forecasts and double the 1.1 billion pounds it made in the same period a year ago. ($1 = 0.7242 pounds)
Mumbai: Barclays Bank has infused Rs 3,000-crore capital to expand its India operations. This is the single largest infusion made since inception — the last large investment was Rs 540 crore in 2009-10.
With this investment, the bank’s total capital deployed in the country increases to Rs 8,300 crore. “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 the country, 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.
As economic activity gathers momentum, there is an increased demand for capital from clients and Barclays Bank India is well placed to support their objectives, Khanna added.
Barclays Bank India on Thursday said that its London-based head office will make an investment of over Rs 3,000 crore in the India office to accelerate its growth ambitions in the country. With this infusion, the bank’s total invested capital in the country will increase to over Rs 8,300 crore.
The last round of capital infusion was to the tune of Rs 540 crore and was made in 2009-10. The latest infusion will be the largest one-time infusion made by the parent into the India operations since its inception.
The expansion in tier-I capital will enable further growth of the bank’s corporate and investment banking and private clients’ businesses. “Barclays has built a market leading business in the country as demonstrated by its top tier financing, advisory and risk management businesses within the investment bank, the entire suite of corporate banking capabilities, including cash management and trade finance, and significant growth of assets under management by the private clients business for several of India’s high and ultra high networth individuals and family offices,” the bank said in a statement.
Jaideep Khanna, head of Barclays, Asia Pacific and Country CEO, India, said that the capital infusion in the bank reflects the success and strong track record of the bank’s India franchise built over the past three decades. “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,” he said.
As economic activity gathers momentum, there is an increased demand for capital from clients and Barclays Bank India is well placed to support their objectives, Khanna added.
As part of its expansion plans in the country, Barclays Bank Plc also inaugurated its international banking unit (IBU) branch at GIFT City in Gujarat in February 2021.
Barclays Plc will invest more than Rs 3,000 crore ($403.99 million) in its India unit to expand operations, the British lender said on Thursday.
With the investment, Barclays Bank PLC India’s total invested capital in Asia’s third-largest economy will increase to more than Rs 8,300 crore.
Barclays said the investment would help grow its corporate and investment banking, and private clients businesses in the country.
“As economic activity gathers momentum, there is increased demand for capital from clients,” said Jaideep Khanna, head of Barclays, Asia Pacific and Country CEO, India.
Barclays Bank PLC had inaugurated its International Banking Unit branch at GIFT City in Gujarat in February.
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