DBS Bank strengthens India franchise on ~24% growth in advances and ~15% in deposits during FY 2016-17

India, 10 Jul 2017 - DBS Bank India (DBS), part of Asia’s leading financial services group, DBS Group Holdings Limited today announced its annual financial results for the fiscal ending 31 March, 2017.

Performance highlights for the year ended 31 March, 2017:

• Net advances grew by 23.7% to INR 21,838.2 crore
• Total deposits increased by 15.2% to INR 26,991 crore
• Gross and net non-performing assets (NPA) ratios were moderated to 3.77% and 2.12% respectively
• Capital Adequacy Ratio ended at 16.49% as on 31 March 2017
• Net investments reduced by 34.2% as the drop-in interest rates levelled off, thereby moderating total assets growth at 1.6%. Total assets stood at INR 44,542.1 crore as on 31 March 2017
• Marginal increase in net profit at INR 12.8 crore for the year ended 31 March 2017 despite continued pressure due to drag from NPAs

Operating review:

Credit growth
There has been an increase in overall lending both in institutional banking and consumer banking segment in line with the bank’s India strategy. Net advances increased by 23.7% to INR 21,838.2 crore from INR 17,653.1 crore in the corresponding period of the previous year.

Deposit growth
The growth in total deposits was marked by increase in current account balances by 22.6% to INR 1,751.4 crore, savings deposits by 69.8% to INR 782.1 crore and term deposits by 13.6% to INR 24,457.4 crore. Growth in CASA YoY was 34.1% albeit from a small base. The bank’s CASA ratio improved to 9.4% compared from 8.1% last year.

Asset quality
The bank improved its net NPAs to 2.12% as on 31 March 2017 from 4.34% as on 31 March 2016. The reduction on gross and net NPAs was through recoveries, sale of NPAs as well as some written down assets to asset reconstruction companies (ARCs).

Capital Adequacy
Despite 23.7% growth in advances, the capital adequacy ratio remains strong at 16.49% (the 18.64% as on 31 March 2016 was at elevated levels due to a INR 667.5 crore capital infusion from Head Office in March 2016).

Speaking on the occasion, Surojit Shome, CEO – India, DBS Bank said: “Over the previous financial year our focused approach led to an all-around growth in advances and deposits and improvement in asset quality. We continue to drive the digital agenda for DBS Bank in India in our consumer, SME and institutional banking businesses.” 

At the overall group level, DBS reported net profit of SGD 4.24 billion for full-year 2016 with total income at a record SGD 11.5 billion.

About DBS

DBS - Living, Breathing Asia

DBS is a leading financial services group in Asia, with over 280 branches across 18 markets. Headquartered and listed in Singapore, DBS has a growing presence in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank's "AA-" and "Aa1" credit ratings are among the highest in the world.

DBS is at the forefront of leveraging digital technology to shape the future of banking, and has been named “World’s Best Digital Bank” by Euromoney. The bank has also been recognised for its leadership in the region, having been named “Asia’s Best Bank” by several publications including The Banker, Global Finance, IFR Asia and Euromoney since 2012. In addition, the bank has been named “Safest Bank in Asia” by Global Finance for eight consecutive years from 2009 to 2016.

DBS provides a full range of services in consumer, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets. DBS is committed to building lasting relationships with customers, and positively impacting communities through supporting social enterprises, as it banks the Asian way. It has also established a SGD 50 million foundation to strengthen its corporate social responsibility efforts in Singapore and across Asia.

With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. The bank acknowledges the passion, commitment and can-do spirit in all our 22,000 staff, representing over 40 nationalities. For more information, please visit www.dbs.com.