Mashreqbank to infuse $150 million into India operations on growth ambitions
Tushar Vikram, India CEO and country head of Dubai-based Mashreq, said in an interview that the bank has around $300 million of capital in the country, $250 million of which the parent company has transferred in the last three years.
“We have approval to bring in another $150 million and depending on all the documentation, this could happen before the end of the financial year this quarter (Q4 FY26),” Vikram said.
After almost three decades at Citibank, Vikram joined Mashreq, the UAE’s fifth-largest bank by assets, in 2024 as head of its India business. Before joining Mashreq, Vikram had a brief stint at private sector lender HDFC Bank, where he led project finance, equity, debt capital markets and mergers and acquisitions.
Mashreq’s capital infusion comes at a crucial time for foreign banks in India. After years of slowing down or taking a backseat while domestic players dominated, foreign lenders are trying to get a second chance against India. While retail banking-led growth remains elusive in the world’s fourth-largest economy, foreign banks are bullish on the corporate lending market.
Deutsche Bank announced that it transferred capital in November 2024. ₹5,113 crore in India branch operations. Standard Chartered Bank vaccinated ₹According to data from rating company Icra, revenue of 496 billion was provided to the local branch in FY24 and FY25.
Experts said foreign banks are looking to leverage India’s strategic geopolitical position as India increasingly emerges as a structural enabler of long-term economic growth.
Strategic facilitator
“For banks like Mashreq, India holds strategic importance in facilitating regional trade and cross-border finance, especially in the India-GCC (Gulf Cooperation Council) corridor,” said Prakash Agarwal, partner at debt market advisory firm Gefion Capital Advisors. “A stronger field presence enables them to deliver integrated corridor banking solutions, more effectively support multinational clients and meaningfully participate in global capital flows.”
While foreign banks accounted for 3.3% of total bank loans in FY25, private banks surpassed 40%, while public sector banks top the list with 52.3%. The remainder was shared between small finance banks and regional rural banks.
“We have seen significant growth for two years in a row. We are growing at 20% globally and growing much faster in India,” Vikram said.
The bank had a loan book ₹3,365.64 crore as of September 30 ₹1,216.08 crore in the same period last year, according to regulatory disclosures.
Vikram said the bank wants to double its revenue, assets and other financial metrics over the next five years.
The plan to double profits and revenue comes from a relatively smaller base. Mashreq’s Indian branch reports net profit ₹41.7 crore behind ₹Total revenue in FY25 is 182 crore. This compares to the profit of: ₹44.9 crore and total income ₹129.8 crore in FY24.
Mashreq currently operates in segments that include debt capital markets, structured loans, trade finance, treasury and solutions. In October, the bank opened shop in GIFT City and started offering loans and trade finance from there.
Vikram said the bank will add products and services in phases and eventually wants to make it a global hub for offshore business. This will not only enable local companies to raise foreign currency loans, trade finance and bonds; The idea is also to use GIFT City to enable foreign companies to raise funds through the route.
Although its operations are smaller than some of its global peers in India, the bank is confident in its ability to turn around faster. Managers at the bank’s headquarters can fly down to meet customers and help structure transactions, he said.
For example, when the bank helped make a major acquisition, executives from Dubai flew out two days after the local leadership team met. Four days after this meeting, the transaction was approved by the bank’s global leadership.
Indian banks have also received healthy amounts of capital from foreign entities. According to the Reserve Bank of India, around $15 billion has been committed to or invested in private financial institutions in 2025 alone.
When asked if Mashreq is considering investing in a local bank, Vikram said Mashreq is open to doing so globally.
“We look at transactions and it depends on whether they fit into our overall growth objectives. We have an office under our global chief financial officer that deals with this,” Vikram said.
