 "DBS India to focus on deposits, SMEs")
DBS Bank India has reworked its strategy to effectively tackle the economic slowdown and the adverse business environment for companies. To protect asset quality, it is set to turn selective in garnering corporate business.
It would also step up action on the retail liabilities (deposits) front and emphasise on the small and medium enterprises segment to garner business through cash management, foreign exchange management services, etc. General Manager and Chief Executive Sanjiv Bhasin said the bank would focus on improving productivity and go slow on recruitment.
Earlier, to manage its growing branch network and business volumes, the bank had increased its staff headcount substantially. From 359 in March 2009, its employee base rose to 786 in March 2012. In March this year, it stood at about 800. Bhasin said corporate growth (assets) would be limited and borrowers would seek funds for refinancing, rather than expansion. The corporate sector could see hard days ahead, owing to the challenging economic and business environment in India. Companies with unhedged foreign exchange positions might be hit hard by the sharp fall in the rupee, he said.
The bank has increased its loan book substantially — from Rs 2,722 crore at end of March 2009 to Rs 13,858 crore at the end of March this year. Deposits rose to Rs 15,487 crore in March 2013 from Rs 3,245 crore in March 2009. For 2012-13, the bank recorded a drop in net profit at Rs 288.5 crore, against Rs 335.5 crore in 2011-12.
It would also step up action on the retail liabilities (deposits) front and emphasise on the small and medium enterprises segment to garner business through cash management, foreign exchange management services, etc. General Manager and Chief Executive Sanjiv Bhasin said the bank would focus on improving productivity and go slow on recruitment.
Earlier, to manage its growing branch network and business volumes, the bank had increased its staff headcount substantially. From 359 in March 2009, its employee base rose to 786 in March 2012. In March this year, it stood at about 800. Bhasin said corporate growth (assets) would be limited and borrowers would seek funds for refinancing, rather than expansion. The corporate sector could see hard days ahead, owing to the challenging economic and business environment in India. Companies with unhedged foreign exchange positions might be hit hard by the sharp fall in the rupee, he said.
The bank has increased its loan book substantially — from Rs 2,722 crore at end of March 2009 to Rs 13,858 crore at the end of March this year. Deposits rose to Rs 15,487 crore in March 2013 from Rs 3,245 crore in March 2009. For 2012-13, the bank recorded a drop in net profit at Rs 288.5 crore, against Rs 335.5 crore in 2011-12.