The Hindu : Business : BoA injects $175 m in India operations

Online edition of India's National Newspaper
Wednesday, May 11, 2005

Business

Business

BoA injects $175 m in India operations

Special Correspondent

NEW DELHI: Bank of America (BoA) on Tuesday announced that it has committed $175 million (about Rs. 767 crores) as additional capital into its India franchise to provide for growth of its client base in the country. The additional capital inflow is to meet the requirements of the Reserve Bank of India (RBI) on single and group borrower exposure limits.

Out of the fresh infusion of $175 million, BoA has already brought in additional Tier-I capital of $150 million (Rs. 657 crores), taking the total capital base of its Indian arm to Rs. 1,400 crores, which is significantly higher than the stipulated RBI norms. The additional Tier-II capital, pegged at $25 million (nearly Rs. 110 crores), will be infused in the current fiscal.

The boost to its capital base will enable the bank to maintain and grow its balance sheet and credit exposure levels based on the prudential limits prescribed by the RBI, a BoA statement here said.

BoA has five branches in India — Mumbai, Delhi, Kolkata, Chennai and Bangalore — and is one of the leading wholesale banks.

It also has a subsidiary, Banc of America Securities India Pvt. Ltd., which is a primary dealer in Indian government securities, and engages in underwriting, dealing and trading of corporate fixed income securities and related capital market activities in the markets.

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