DBS Bank sees its India operations growing at 20-25 per cent over the next couple of years as it realigns its business strategy to focus on corporate, high net worth individuals (HNIs) and emerging affluent customers.
“To be in the mass consumer segment, you need a large branch network. Given the regulatory environment in India, it is unlikely that we will be able to build a large branch network over the next couple of years. Hence, we have decided to focus on affluent and mass-affluent customers who can be serviced from fewer touch points,” said Piyush Gupta, CEO, DBS.
The lender currently has a loan book of Rs 10,000 crore and deposits worth Rs 7,000 crore in India.
“We also see investment banking and capital markets as an area of opportunity,” Gupta added. DBS Bank currently has 10 outlets and recently received licences to open branches in Cuddalore and Kolhapur. According to Gupta, there is a natural flow of Indian wealth into Singapore and DBS wants to capitalize on it. “We see this as a significant opportunity in the years to come. We are active in the NRI remittance business, which we run from our offices in Dubai and Singapore. However, in future years, there could possibly be more opportunity in the opposite flow of money,” Gupta added.
Currently the lender derives 62 per cent of its revenues from Singapore, 27 per cent from Greater China and South and South-East Asia. In the next five years, DBS plans to increase the proportion of business flowing from Greater China and South & South-East Asia to 30 per cent each. India account for 8 per cent of DBS’ global revenues. For the financial year ended March 31, 2009, DBS India recorded revenues of Rs 617 crore and profit after tax of Rs 259 crore. Over the same period, the lender’s headcount grew seven times to about 400. The lender has brought Rs 1,500 crore into India as capital and says it does not intend to remit any profits to Singapore.
