Singapore based DBS Bank projects that its Indian operations are going to attain 20-25% growth in the upcoming couple of years. The bank has restrategized its focus on corporate and high net worth individuals (HNIs) and upcoming premium customers.
Piyush Gupta, CEO, DBS, "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."
The loan book of the Indian operations of the bank currently values Rs. 10, 000 crore and deposits of the bank are worth Rs. 7,000 crore.
"We also see investment banking and capital markets as an area of opportunity," Gupta added.
Gupta also said that a natural flow of Indian wealth into Singapore is prevalent and the bank aims to cash on this opportunity. "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," he quoted.
The bank has 10 branches in the country and has received license to start operations in the cities of Cuddalore and Kolhapore.
The bank currently brings 62% of the revenue from Singapore. 27% of the revenue comes in from Greater China, South and South East Asia which the bank plans to increase to 30% in the upcoming five years.
The current financial year recorded revenues of Rs. 617 crore for the bank and its net profit amounted to Rs. 259 crore. The bank has brought Rs 1,500 crore into India as capital and it has no intentions of remitting the profits earned from India to Singapore.