DBS Bank is planning to triple business in India by three times
DBS Bank invested Rs 1,800 crore this year to stoke growth in the brief run, and It's capital base in India now holds at Rs 7,700 crore. Singapore-based DBS Bank that later changed its Indian offices into a wholly-owned subsidiary -- DBS Bank India, on March 4 stated it intends to triple the proportion of its business in the country by expanding exposure to consumer loans.
"We will be concentrating on SME and retail over the next 5 years. We strive to occupy the share of retail business-both responsibility and assets-to about 30 percent of earnings and profitability," said Surojit Shome, CEO, DBS Bank India. The lender's retail loan book is about 10 percent currently.
The bank, he said, intends to triple the proportion of its balance sheet in the short-run. "We traversed Rs 50,000 crores this year. We think, over 3 years, we can triple that," he said.
The bank also intends to expand its headcount in India by 800-1,000 this year.
The bank demands to close this year with net non-performing asset ratio under 0.4 percent with a coverage ratio of further than 90 percent. "Over the last 2 years, unlike others, we were able to put our credit difficulties behind us. We cleaned up our books, providing us a reliable foundation and the possibility to grow," said Piyush Gupta, CEO, DBS Bank.
After a pause of over four years, the Reserve Bank of India (RBI) last week, authorized the transformation of the current 12 DBS Bank branches in the country into its listed wholly-owned subsidiary DBS Bank India. DBS Bank was the primary international bank to apply for the WOS model in 2015. It received in-principle consent from RBI in September 2017.
With programs to increase its branch tally to 50 in the subsequent 12-18 months, DBS Bank India will become the 2nd biggest foreign bank in India. At present, there are 45 foreign banks in India, with Standard Chartered Bank having the most significant appearance with 100 branches and 5 subsidiaries. Citibank has 35, and HSBC has 26 branches in India.
State Bank of Mauritius was the first international bank to transform to the WOS model, following the regulator's consent on December 1, 2018. It has 4 branches in India.
DBS Bank said it advances to predominate on India. "We anticipate a strong increase trajectory over the next 2 years. We think the possibilities are great and we are fully prepared," Gupta said.
The foreign bank has spent Rs 1,800 crore this year to boost its growth and fuel extension in the brief run. It's capital base presently stands at Rs 7,700 crore in India.
As per the regulatory framework announced by RBI in November 2013, foreign banks that opt for the WOS program will be reviewed on standard with planned commercial banks in terms of branch expansion and preference sector lending.
In order to satisfy these criteria, Shome stated the bank had received RBI's approval to strengthen its rural lending book throughout 5 years.