MUMBAI: Mashreqbank PSC plans to add $150 million in capital to its Indian operations as it looks to ramp up its presence in the country’s corporate banking landscape.
Tushar Vikram, chief executive officer and country head India of Dubai-based Mashreq, said in an interview that the bank has about $300 million of capital in the country, $250 million of which the parent infused over the past three years.
“We have approval to bring another $150 million and subject to all the documentation, it may happen before the end of the financial year in this quarter (Q4 of FY26),” said Vikram.
Vikram joined Mashreq, the fifth-largest bank in the UAE by assets, as head of the India business in 2024 after spending almost three decades at Citibank. Prior to joining Mashreq, Vikram had a brief stint at private sector lender HDFC Bank, where he led project finance, equity, debt capital markets and M&A.
Mashreq’s capital infusion comes at a crucial time for foreign banks in India. After years of either going slow or taking a backseat while local players dominated, foreign lenders are trying to get a second shot at India. While retail banking-led growth in the world’s fourth-largest economy is still hard, foreign banks are upbeat about the corporate lending market.
Deutsche Bank said in November 2024 that it infused capital of ₹5,113 crore in its India branch operations. Standard Chartered Bank infused ₹496 crore into the local branch over FY24 and FY25, according to data from rating company Icra.
Experts said foreign banks want to tap India’s strategic geopolitical positioning as it increasingly emerges as a structural enabler of long-term economic growth.
Strategic facilitator
“For banks such as Mashreq, India holds strategic importance in facilitating regional trade and cross-border finance, particularly across the India-GCC (Gulf Cooperation Council) corridor,” said Prakash Agarwal, a partner at debt market advisory firm Gefion Capital Advisors. “A stronger on-ground presence enables them to deliver integrated corridor banking solutions, support multinational clients more effectively and participate meaningfully in global capital flows.”
Foreign banks accounted for 3.3% of total bank credit in FY25, with private banks cornering 40% and public sector banks topping the list at 52.3%. The remaining was divided between small finance banks and regional rural banks.
“It has been two consecutive years of significant growth. Globally, we are growing at 20% and in India we are growing much faster,” said Vikram.
The bank had a loan book of ₹3,365.64 crore as of 30 September, up from ₹1,216.08 crore in the same period last year, as per regulatory disclosures.
Vikram said the bank wants to double its revenue, assets and other financial metrics in the next five years.
The plan to double profit and revenue comes from a relatively smaller base. Mashreq’s India branch reported a net profit of ₹41.7 crore on the back of ₹182 crore in total income in FY25. This compares with a profit of ₹44.9 crore and total income of ₹129.8 crore in FY24.
Mashreq currently operates in segments including debt capital market, structured loans, trade finance, treasury, and solutions. In October, the bank set up shop in GIFT City and started offering loans and trade finance from there.
Vikram said the bank will add products and services in phases and wants to eventually make it into a global hub for offshore business. This would allow not just local companies to raise foreign currency loans and trade finance and bonds; the idea is also to use GIFT City to get foreign companies to raise funds through the route.
While smaller in operations than some of its global peers in India, the bank is relying on its ability for quicker turnarounds. He said executives from the bank’s headquarters can fly down to meet customers and help structure transactions.
For instance, when the bank assisted a large acquisition, executives from Dubai flew down two days after the local leadership team met. Four days after that meeting, the transaction was cleared by the bank’s global leadership.
Indian banks have also received healthy amounts of capital from foreign entities. In 2025 alone, about $15 billion was committed to or invested in private financial entities, according to the Reserve Bank of India.
Asked if Mashreq is looking at investing in a local bank, Vikram said that globally, Mashreq is open to that.
“We look at transactions and it depends on whether it fits into our overall growth objectives. We have an office who looks at this under our global chief financial officer,” said Vikram.