 "DBS Bank-India reworks course to ride rough times")
DBS Bank India unit has reworked a strategy to effectively navigate through economic slowdown and adverse business environment for corporate segment.
It will turn selective is garnering corporate business with eye on protecting asset quality. Indian arm of Singapore-based DBS will step up action in retail liabilities (deposits) side.
Its emphasis in Small and Medium Enterprises segment to will to garner business through products like cash management and foreign exchange management services.
Sanjiv Bhasin, general manager and chief executive officer, DBS Bank said bank will focus on improving productivity and go slow on recruitment.
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Its headcount grew substantially to manage growing branch network and business volumes. Its employee base more than doubled to 786 in March 2012 from 359 in March 2009. It was just over 800 in March 2013.
The corporate growth (assets) will be limited. Borrowers will be seeking funds for refinance than expansions. The corporate sector could see hard days ahead due to challenging economic and business environment in India. Those (companies) with unhedged foreign exchange positions may be hit by sharp fall in value of rupee, he said.
Bank grew its loan book substantially from Rs 2,722 crore at end of March 2009 to Rs 13,858 crore in March 2013. Deposits rose to Rs 15,487 crore in March 2013 from Rs 3,245 crore end of March 2009.
Bank posted a drop in net profit at Rs 288.5 crore in 2012-13 from Rs 335.5 crore in 2011-12. Its asset quality was hit in 2012-13, reflecting stress from corporate and business sector. The gross non-performing assets rose to Rs 582.03 crore in 2012-13 from Rs 214.66 crore at end of March 2013.
The provision coverage ratio stood at 43.48% in March 2013 as against 63.93% a year ago.
The capital adequacy ratio stood at 12 .99% in March 2013 as against 14.38% in March 2012.
It has 12 branches in India with presence covering including four metros and other cities including Pune, Surat and Nasik.