DBS Bank India Limited strengthens India franchise
After receiving final approvals from RBI, DBS Bank Ltd. (branches) were amalgamated by conversion into DBS Bank India Limited (DBIL), a Wholly Owned Subsidiary (WoS) of DBS Bank Ltd, Singapore, with effect from 1 March 2019. The profit/loss data given below is for the combined period, viz. eleven months of operations of the erstwhile India branches (1 April 2018 to 28 February 2019) and one month of banking operations in DBIL (1 March 2019 to 31 March 2019) including costs incurred on set up of DBIL.
- Net profit stood at INR 14.5 crore against the loss of INR 533 crore in FY2017-18
- Total deposits increased by 15.76% to INR 33,828 crore
- Net advances grew marginally to INR 18,108 crore
- Gross and net non-performing assets (NPA) ratios were moderated to 3.13% and 33% respectively (vs 5.04% and 1.09% respectively in the PY) with provision coverage ratio increasing to 92% v/s 82% in FY2018
- Capital Adequacy Ratio stood at a healthy 69% as on 31 March 2019
There has been a moderate increase in overall lending both in institutional banking and consumer banking segments in line with the bank’s strategy. Net advances increased by 1.35% to INR 18,108 crore from INR 17,867 crore in the corresponding period of the previous year.
The growth in total deposits was marked by increase in current account balances by 93.82% to INR 4,631 crore, savings deposits by 16.97% to INR 1,540 crore and term deposits by 8.39% to INR 27,657 crore. Growth in CASA YoY was 66.51%. The bank’s CASA ratio improved to 18.24% compared from 12.68% last year.
The bank improved its net NPAs to 0.33% as on 31 March 2019 from 1.09% as on 31 March 2018 with provision coverage ratio at 92%. The reduction on gross and net NPAs was mainly due to focused strategy adopted by the management to address stress assets.
The capital adequacy ratio remained very strong at 19.69%, compared from 16.14% last year pursuant to capital infusion of about INR 1,300 crore in Dec’ 2018.
At the overall group level, DBS reported profit of SGD 5.63 billion during the year ended 31 December 2018. It recorded a profit of SGD 3.25 billion for H1 2019.
Speaking on the occasion, Surojit Shome, CEO – DBS Bank India Limited said: “Over the previous financial year, we have strengthened our balance sheet and improved asset quality. We have focused our efforts towards growing our franchise in India through the establishment of the wholly owned subsidiary with the aim to build on the momentum to achieve greater scale in India.”
DBIL will accelerate its growth plans, expand its operations through a “phygital” model to further serve large corporates, small and medium enterprises (SMEs) and individual customers.
DBIL intends to establish over 100 customer touchpoints – a combination of branches and e-kiosks – across 25 cities in the next 12-18 months.
In March, DBIL opened nine new branches and extended its reach to Hyderabad, Ahmedabad, Coimbatore, Vadodara, Indore and Ludhiana. In addition, it expanded within cities where it is already present in, through new branches in Andheri in Mumbai, as well as Gurugram and Noida in the National Capital Region. It has also opened five branches in unbanked rural centres.
In July 2019, DBS Bank Ltd, Singapore become the first bank to concurrently hold three global best bank awards. This was achieved after DBS was named “World’s Best Bank” by leading global financial publication Euromoney in its 2019 Awards for Excellence. It follows the bank’s wins of Global Finance’s “Best Bank in the World” in August 2018 and The Banker’s “Bank of the Year – Global” in November 2018.
This is the first time an Asian-headquartered bank has been named “World’s Best Bank” by Euromoney since the award was launched in 1993.
DBS is a leading financial services group in Asia with a presence in 18 markets. Headquartered and listed in Singapore, DBS is 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.
Recognised for its global leadership, DBS has been named “World’s Best Bank” by Euromoney, “Global Bank of the Year” by The Banker and “Best Bank in the World” by Global Finance. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “World’s Best Digital Bank” by Euromoney. In addition, DBS has been accorded the “Safest Bank in Asia” award by Global Finance for ten consecutive years from 2009 to 2018.
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 of our 27,000 staff, representing over 40 nationalities. For more information, please visit www.dbs.com.