Deutsche Bank on Tuesday said its profit after tax from the India business expanded 31 per cent to Rs 823 crore in 2011-12 (April-March) from Rs 630 crore a year earlier. Retail banking operations in India turned profitable during the year, aiding the growth in earnings.

“(The growth in profitability) has been possible due to Deutsche Bank having built strong and diversified businesses across a highly client-centric organisation in India," Gunit Chadha, co-chief executive for the Asia-Pacific region and member of the group of executive committee, said.

The lender’s net interest margin expanded to 5.7 per cent, while cost to income ratio remained restricted at 41 per cent in the last financial year. Its net non-performing asset ratio was 0.09 per cent, while the gross bad loan ratio was at 1.06 per cent at the end of March. The earnings include the performance of the bank’s India branches only and exclude the financial results of other group entities in India.

Apart from banking business, Deutsche Bank Group also has operations in equity broking, asset management, primary dealership, corporate finance, outsourcing and non-banking finance segments.

In 2011-12, Deutsche Bank increased its regulatory capital in India by over Rs 455 crore. This was the fifth capital infusion since 2007.

The foreign lender’s capital base in India is currently over Rs 6,000 crore. Its capital adequacy ratio was 14.1 per cent at the end of March, 2012.

Deutsche Bank said it will continue to expand its retail branch network in the country. The bank has recently opened a branch in Ahmedabad and plans to set up another in Surat. This will increase the bank’s branch network to 17 across 16 locations in India.