DBS BANK INDIA LIMITED STRENGTHENS INDIA FRANCHISE

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Returns to profits during FY 2018-19

MUMBAI, 7 August 2019 – DBS Bank India Limited, the wholly owned subsidiary of DBS Bank Ltd., Singapore and part of Asia’s leading financial services group, DBS Group Holdings Ltd., announced its financial results for the fiscal ending 31 March, 2019.

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.

Performance highlights:

·         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 by marginally to INR 18,108 crore

·         Gross and net non-performing assets (NPA) ratios were moderated to 3.13% and 0.33% 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 19.69% as on 31 March 2019

Operating review:

Credit growth

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.

Deposit growth

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.

Asset quality

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.

Capital Adequacy

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.

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