Bank of America on Tuesday said it was committing additional capital to the tune of $175 million (Rs 767 crore) for shoring up its India franchise.
The capital infusion is mainly to meet the requirements of the Reserve Bank of India on single and group borrower exposure limits and to provide for growth of its client base in India, the bank said in a release in Mumbai on Tuesday.
Of the fresh infusion of $175 million, the bank has already brought in additional Tier I capital of $150 million (Rs 657 crore), taking the total capital base of its Indian arm to Rs 1,400 crore (Rs 14 billion).
The bank said the additional Tier II capital of $25 million (Rs 110 crore), will be infused in the current fiscal.
The bank said the boost to its capital base will enable it to maintain and grow balance sheet and credit exposure levels based on the prudential limits prescribed by the RBI.
"The increased capital base will enable the bank to grow its business further in India with existing clients and add new clients," Bank of America's managing director and country head Vishwavir Ahuja said.
Bank of America has five branches in Mumbai, Delhi, Kolkata, Chennai and Bangalore.
