Credit Suisse injects Rs794 crore in India unit

Swiss banking major Credit Suisse is infusing Rs794 crore (about $164 million) in its wholly owned non-banking finance company (NBFC) subsidiary, Credit Suisse Finance (India) at a time when the Indian stock markets is wallowing at record lows, struggling to recover ground after the largest corporate scandal to hit the bourses in recent history.

Though its NBFC arm in India, Credit Suisse caters to the corporate and individual investors in asset backed financing, securities backed financing, Initial Public Offering (IPO) lending and pre-IPO funding.

With this investment, the total capital base of Credit Suisse Finance would go up to Rs827 crore (approximately $170 million).

In an effort to grow its NBFC operations in India, the company had, last year, taken over Chennai-based NBFC Bokdia Marketing and Finance.

''Credit Suisse is in a strong position, with a robust integrated business model, a sound liquidity position and one of the strongest capital bases of any global bank. This capital infusion is a very clear statement of our commitment to the growth of our business in India,'' said managing director and country head of Credit Suisse in India, Mihir Doshi. ''Our strategy for India remains clear and consistent, as we will continue to invest selectively in the growth of wealth management, investment banking and asset management business,'' he added.

He said the additional funds would be deployed to meet client requirements during the current credit squeeze - to provide asset-backed financing, securities-backed financing and lending related to IPOs.

Credit Suisse launched its India brokerage operation and obtained a merchant banker licence in 2007. It was granted a portfolio manager licence in 2008 to provide services to high net worth individuals as well as family-owned businesses and entrepreneurs. The company's centre of excellence in Pune, which opened in 2007, employs 1,500 people to support business activities globally.