Bank of America boosts India capital, sees growth

Bank of America boosts India capital, sees growth

Mumbai: Bank of America has injected $83 million into its India operations to boost capital and help it expand in the fast-growing market that has lured global financial firms.

“The infusion of additional capital reflects the confidence of the bank in its India operations and the recognition of India as a key growth market in Asia," Vishwavir Ahuja, managing director and country executive for India, said in a statement on Tuesday, 16 October.

The Tier-I capital of its Indian branches has now risen to $466 million, while the capital base has increased to $510 million, the bank said.

Bank of America, which has been in Asia for 60 years and operates in 11 countries with over 2,200 employees, has branches in Mumbai, Delhi, Kolkata, Chennai and Bangalore, it said.

Global banks including Citibank, HSBC and Standard Chartered have been expanding operations and reporting strong growth in India, despite limits on the number of branches they can open but India is set to review controls on foreign banks in 2009.

Foreign financial firms have been buying stakes in brokerages and exchanges and expanding operations in India, where a booming economy has boosted the stock market and companies have been raising funds and striking large M&A deals.

Last week, Morgan Stanley got a license to expand investment banking and in September, Citigroup and Merrill bought 5% in India’s top commodities exchange.

Earliler, Goldman Sachs and Intercontinental Exchange Inc bought stakes in another commodity bourse, while Germany’s Deutsche Boerse and Singapore Exchange have picked up stakes in Indian stock exchanges.