Barclays India to boost capital with $50 m infusion

Barclays will infuse an additional equity capital of $ 50 million to the Indian arm, Barclays India. This marks the second round of capital infusion since the first injection of $ 50 million in the first quarter of 2002.

With the robust growth in the Indian business and revenues rising by 34 per cent for the year ended March 2004, "the increase in capital underlines our confidence in the business and in future growth opportunities," said Robert Morrice, chairman and chief executive, Barclays Capital in Asia Pacific.

A stronger capital will enable Barclays to bolster its domestic rupee-debt capital markets platform as well as extend its risk management capabilities, Morrice added.

Today, Barclays is one of the leading banks for blue-chip Indian corporates, offering a range of financial and capital market products in onshore as well as offshore debt markets.

The European bank has helped arrange financing for India's leading government and private sector issuers such as National Hydroelectric Power Corporation, Panatone Finvest (guaranteed by Tata Sons), Tata Power, Indian Railway Finance, Power Finance and Bharti Cellular.

Further, it stated that it is a leader in terms of bringing inaugural issuers to the off-shore market. Barclays' customers are across a diverse portfolio of sectors including telecom, power, steel, metals and mining, manufacturing, auto and financial services.

Barclays India's dominant position in the offshore debt market was recognised last year when it was awarded the prestigious "Indian Loan House of the Year 2003" award by IFR Asia. Earlier this year, Barclays made a financial investment in UTI Bank, underscoring its strong confidence in the bank.