BARCLAYS INVESTS $150M IN EXPANSION IN INDIA
(21 March 2006)

Barclays has invested US$150 million over the past month, doubling its commitment to US$300 million, to its Indian operations to support the growth of the investment banking business and develop its commercial & corporate banking service in the country. The bank will expand its branch network and strengthen its team in India. The Group will also invest a further US$70m of profit and loss investment for the corporate banking venture over 2006 and 2007.

In 2005, Barclays announced an increase of 15% in profits before tax to GBP5.3 billion with 40% of this figure coming from non UK markets. At the time, Barclays indicated that the Group can grow this figure organically to 50% over three years with its existing portfolio of businesses.

“Growing our international businesses is important to Barclays,” said David Roberts, board member of Barclays PLC and chief executive of the bank’s International Retail and Commercial Banking operations, adding, “We wish to be where the prospects for growth in banking profits are greatest. Undoubtedly, over the medium term, this involves increasing our exposure to growing markets such as India.”

The newly expanded services will leverage the Group’s proven expertise in commercial banking – in particular, lending supply chain financing, structured trade finance, risk management and corporate liquidity management. The corporate banking business will initially target small and medium business enterprises as well as larger companies and multinationals.

Barclays will recruit top talent to drive the initiative, and will have a team in place from day one. The corporate banking business is likely to employ around 150 people over the medium term (40 people in the first year). This is in addition to the 40+ employees that are already employed by Barclays’ investment banking in India.

The corporate banking business will operate out of Mumbai, and Barclays has also sought regulatory approval to open branches in other Indian locations.

Alongside Mr Roberts, Robert Morrice, chief executive Asia Pacific noted; “We like what we see in India and are keen to grow, both in the investment banking space where we have established our credentials, and in other areas of financial services, where the Barclays Group has a proven track record internationally. These funds will allow us to accommodate the Group’s expansion plans for India, subject of course, to appropriate regulatory approvals.”

As of now Barclays’ activities in India mainly cover investment banking and risk management services. The bank is a leading player in the domestic and international capital markets, offering clients a range of onshore and offshore debt financing options. In India, it is the number 1 investment bank for convertible bond issuance, having bought 13 deals worth US$1.287 billion to the market since January 2005. Earlier this year, Barclays managed National Thermal Power Corp’s debt issue, the first 10-year international issue from India since the Asian financial crisis.

Barclays has been operating in India since the late 1970s and has a 300-year history in providing financial services to a global customer base. The group is actively increasing its revenue from outside the United Kingdom. In particular, Barclays is expanding across Asia, taking advantage of significant fundamental and structural adjustments that have occurred in the region such as liberalisation in India, banking reform in Malaysia and Korea, and the opening of China’s markets.