The Indian operations of foreign lenders Citibank and Barclays have been infused with fresh capital from their parents so as to nullify the effect of any kind of incremental losses which might arise from their lending portfolios.
Citibank has infused Rs 1,140 crore this fiscal in the Indian operations which is sufficient to absorb any kind of hit arising from losses in its Indian operations. This capital infusion has also aided in improving the tier I capital of the bank to 17.3%.
The small sized non banking finance arm of Citi has however reported losses.
With recovery signs being shown by the economy, chances of losses and delinquencies is expected to reduce.
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