Su Shan Tan, Chief Executive of Singapore-based DBS Bank, views India as a long-term structural growth story despite near-term volatility. The country could benefit from the surge in global demand for memory chips and hardware driven by the artificial intelligence boom. However, to capitalise on this opportunity, it must invest in people and education, she says.
The bank infused ₹1,600 crore into its India operations in March and remains committed to the country, stepping up investments in wealth, supply chain financing and client connectivity, she tells ET’s Joel Rebello and Sangita Mehta.
Edited excerpts:
There is no end in sight for this war. What are your best- and worst-case scenarios for the global economy?The best-case scenario is a swift end to the war in Iran. The worst-case scenario is prolonged uncertainty, with the Strait of Hormuz remaining shut, supply chains disrupted, and prices of everything, from chemicals and fuel to jet fuel and helium, remaining elevated. Not only elevated, inventories could run down, leaving you short of essential supplies.
Right now, we are in a phase of volatility, and this lack of clarity is making markets jittery. While markets want to stay optimistic, even small negative signals can trigger sharp reactions.
Have you seen any shift in global activity as a result of this war?This is a structural trend. It began with Covid, when companies realised they could not rely on a single source of supply and needed to diversify. Covid was the first test, tariffs the second, and now the Iran war is the third.
The importance of diversifying supply chains, demand markets, payments, currency exposure, capital markets, and even where wealth is managed and booked has grown. Companies want to eliminate single points of vulnerability or failure, even at the cost of higher operating expenses.
Another key trend is the urgency around the shift to renewables. Earlier, sustainable aviation fuel was too expensive, but with jet fuel prices having tripled, it now appears more viable.
World trade has weakened. How do you see the international trade scenario evolving?Countries and companies that once relied heavily on the US have diversified. Intra-regional trade has picked up across Asia—between India and Taiwan, West Asia and the GCC, within ASEAN, and across North and South Asia.
Another structural trend is the AI boom, which has created shortages in areas such as memory chips and hardware, driving a resurgence in hardware valuations. Companies in supply chains linked to players like Nvidia are seeing strong growth.
This is positive for India, which stands to benefit from the hardware push as it aims to become a manufacturing hub. With Tata’s first fab expected by January 2027, the broader ecosystem is likely to follow.
But the refrain here is that India missed the AI bus…India can still leapfrog by building next-generation fabs. However, it must invest in talent, people and education. Indians are hardworking, smart and agile, and I am confident the country can make the transition. Long-term structural opportunities remain significant.
How will DBS tap these opportunities?We will continue to invest in people, technology and deeper client relationships. We aim to bring more Asian and multinational companies into India, leveraging the country’s growing connectivity and manufacturing shift to build supply chain pipelines and attract capital and production.
We also see strong potential in wealth creation. Wealth management, though currently a small part of the business, can scale significantly.
Any plans to expand the branch network or infuse new capital in India?We infused ₹1,600 crore in March this year. If appropriate, we will expand our branch network, with a strong focus on wealth—we are already adding eight wealth centres in India.
It is not just about physical branches or capital, but also about investing in talent and workforce capabilities. I remain optimistic about India’s long-term structural growth.
The RBI’s move on FCNR(B) and ECB offers an opportunity to mobilise funds. Do you have internal targets?We last tapped FCNR(B) in 2013, so this presents a fresh opportunity to strengthen our NRI pipeline. We are working on pricing and flows, and I remain optimistic—it is helping support rupee stability.
What more can the government do to attract foreign capital?We have seen success with ‘India Day’ and roadshows in markets such as Taiwan, the UK and the US. The government’s economic development agencies could collaborate with banks like us to promote India further.
We can identify investors who are genuinely interested but unsure where to start. We have brought in Korean, Japanese and Mandarin speakers, as language familiarity often provides a useful entry point.
On the policy level, are there gaps the government can address quickly?People invest in countries where they have long-term confidence, which comes from predictability, transparency and stability—all of which India offers. It also has a strong, ambitious and capable workforce.
It has been six years since DBS acquired Lakshmi Vilas Bank. Have you fully realised the benefits?A great deal of work has been carried out over the past five years, and it has been challenging. The team has done a commendable job integrating operations. We are seeing growth in retail banking, gold loans and CASA deposits, but we are still at the early stages of the journey.
Many foreign companies such as Hyundai and LG have listed in India. What about DBS?There are no such plans currently—it is too early to consider that.
Where does India rank in DBS’s revenue?India ranks around fourth or fifth, depending on currency movements, with the rupee having depreciated somewhat. Taiwan contributes more to the top line. However, India has been one of our strongest growth stories over the past three years, driven by economic strength and a growing middle class.
We see this as short-term consolidation but a long-term growth opportunity, and we remain committed.
Where do you see smart money going over the next five years—gold or the dollar?It is difficult to predict, but smart money remains diversified and flexible. It does not depend on a single asset class.
Gold was traditionally seen as a hedge against the dollar, but in India, it has also become a hedge against the rupee. The US still accounts for a significant share of global markets, so exposure to US dollars remains essential.
At the same time, gold offers diversification. Investors need both, as their performance tends to vary under different conditions.
What keeps you awake at night?Cyber risk. AI is becoming more advanced and autonomous, making it extremely powerful. Cybersecurity and data protection must remain at the forefront of everything we do.
This requires long-term investment in what we call cyber hygiene—layered defences, continuous testing, identifying vulnerabilities, and ensuring that systems are updated promptly. Over-reliance on any single counterparty must also be avoided, particularly in times of conflict.
As featured in The Economic Times
World’s Best Bank 2025, 2021, 2019, Euromoney
World’s Best Bank for Customer Experience 2025, Euromoney
World’s Best Bank for Corporate Responsibility 2025, 2023, Euromoney
Asia’s Safest Bank, 2009 – 2025, Global Finance
Best Bank in the World 2022, Global Finance
India’s Best International Bank 2021, Asiamoney
World’s Best Banks - #1 in India 2021, Forbes
World’s Safest Commercial Bank 2021, Global Finance
