Singapore-based DBS bank is "very optimistic" on India's potential and plans to have more than 50 branches in the country over the next three years once its application for wholly-owned subsidiary (WOS) is approved, said a bank executive here today.
"We are very positive on India's potential," Radhika Rao, DBS' vice president for economic & currency research told PTI at the DBS Asian Insights Conference 2015 today.
In a move to expand its operation in the coming years, The Development Bank of Singapore Limited (DBS) has applied to the Reserve Bank of India for WOS approval on 30 April 2015.
Once WOS approved, DBS would expand its branches in India to over 50 from the current 12, she said.
Citing the progress of economic reforms under the one-year old government of Prime Minister Narendra Modi, Rao expects the gross domestic product growth of over eight per cent in 2016-17, up from 7.6 per cent in the current fiscal year.
The Indian government has done the ground work in the past year and the progress for economic take off is on the right path, she said.
"Improvement in the perception towards India and renewed confidence are the most notable changes over the past 12 months," she said.
The improvement in confidence in the Indian system has brought USD 42 billion of region capital inflows into the asset markets in 2014, said DBS in a recent report on India.
"We expect growth to pick-up hereon," the report said.
"While the groundwork for crucial reforms is complete, the more difficult phase of implementation will be under watch in the quarters ahead," said the report of DBS Asian Insights.
