The German state has injected a further €10 billion ($13.7 billion) into Commerzbank and taken a 25 per cent stake to shore up the country’s second-largest lender and allow it to complete the takeover of Dresdner Bank.

Dresdner Bank is the parent of Kleinwort Benson, the venerable UK-based banking group.

The German capital comes two months after the bank received an €8.2 billion injection from the government’s financial sector bail-out fund.

As a result of the latest measure, the German bank’s core capital ratio will rise to around 10 per cent, Commerzbank said in a statement.