Deutsche Bank to invest $50 M in new company
By siliconindia   |   Tuesday, 24 August 2004, 19:30 IST
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NEW DELHI: Financial services giant, the Deutsche Bank Group plans to invest $50 million (Rs 230 crore) in its 100%-owned holding and investment company in India, reports an Indian daily. The new company, the daily said, will fulfill the investment needs of its various existing and future operating subsidiaries that are engaged in the financial services and IT sectors in the country. The group, through Deutsche Group Asia Pacific Holdings, plans to set up the new company for the purpose. Conforming to regulations and policy guidelines of the Indian government related to FDI, said sources, the company shall have a minimum paid up share capital of $50 million. Economic Times quoting sources said the parent company, Deutsche Bank proposes to hold non- voting equity shares with special rights as on dividend in the various existing and future operating subsidiaries of the company. It is learnt that Deutsche Asia Pacific Holdings has applied to the Foreign Investment Promotion Board (FIPB) asking permission to set up a 100% owned company with paid-up capital of $50 million. According to the proposal, Deutsche Asia Pacific Holdings, after receiving approvals from the government, will make an up-front investment of atleast $7.5 million and the balance within 24 months from the date of approval of the Indian government. The bank operates in India through various companies. Deutsche Bank operates in India through its six full-fledged branches in Bangalore, Calcutta, Chandigarh, Chennai, Mumbai and New Delhi. Deutsche Bank, which has over 500 employees spread across the six branches, has a strong presence in Corporate Banking, International Trade Finance, Global Markets, Custody Services, Global Cash Management, Personal & Private Banking. Last year, Deutsche Bank started BPO operations in India with the launch of Deutsche Network Services Pvt Ltd in Bangalore for payment and cash management processing. It may be recalled that in December 2000, the bank had exited the retail banking business by transferring its retail deposit liabilities in India to HSBC.