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DBS Bank gets $75 million capital shot

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Our Banking Bureau Mumbai
Singapore-based DBS Holdings has infused $75 million of capital in the Indian operations of DBS Bank to fund its growth plans.
 
The additional capital infusion will speed up asset growth by allowing the bank to take on bigger domestic exposures.
 
It also underscores the momentum that has been building up in DBS' India operations in the last one year, said Rajan Raju, DBS Bank's Managing Director and Head-South and Southeast Asia.
 
The capital infusion has raised DBS Bank's capital in Indian operations to $122 million. DBS has infused $30 million capital in March 2004.
 
DBS Bank India CEO Pranam Wahi said the bank will now be able to offer a whole gamut of services including working capital, term loans, trade finance, apart from expanding its wholesale banking services to include cash management, custody operations, derivatives and bond-underwriting.
 
 DBS now plans to increasingly tap the mid-sized corporates to offer its services and expand its balance sheet.
 
DBS, which began its operations in India in 1994 through a representative office in Mumbai, increased its staff strength from 20 to 60 employees, including the CEO, in 2004.
 
DBS Bank's asset base as on December 31, 2004 is only Rs 200 crore. It now plans to tap DBS has also applied to the Reserve Bank of India seeking permission to open two branches. It currently operates from its only branch located in Mumbai.
 
DBS was very active in India in the syndicated loan market in 2004. During the year, it acted as the bookrunner for raising a total of $444.4 million for 13 corporates. This made DBS the second after Citigroup in terms of the number of loan syndications.
 
DBS will now invest for building up its systems infrastructure and also recruit staff for cash management operations.

 
 

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First Published: Jan 11 2005 | 12:00 AM IST

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