Singapore’s DBS Bank, which started operations in India as a wholly owned subsidiary (WoS) this month, is planning to grow its balance sheet size threefold in five years, according to Surojit Shome, CEO, DBS Bank India.
The bank is expected to close the financial year with a balance sheet size of ₹50,000 crore. In 2018, the bank infused ₹1,800 crore capital while transforming itself into a WoS. The total capital of the bank now stands at ₹7,700 crore, with a capital adequacy ratio of more than 19%.
The loan book, which is about ₹20,000 crore, is predominantly made up of corporate loans while the share of retail is less than 10%. The deposit base of the bank is about ₹30,000 crore.
The aim is to grow the retail so that it contributes 30% of the income and profitability over the next few years, Mr. Shome said.
While the bank had presented a 10-year road map to the board, the ‘next five years will be crucial’ to stabilise operations in the country, he said.
DBS is the second foreign lender to have received RBI approval to convert into a WoS. The regulator had said foreign lenders opting for this route would be treated on par with local banks in terms of branch expansion.
Local banks do not need prior RBI approval for opening branches, provided they open 25% of the branches in unbanked and under-banked centres. Foreign banks that operate through the branch route need RBI approval for every branch they open.
“Unlike many other foreign banks, we want to go deep,” said Piyush Gupta, CEO, DBS Group, explaining the rationale behind opting for the WoS route.
Over the next 12-18 months, DBS Bank India is planning to open 100 ‘touch points’ in 25 cities that include full service branches, automated teller machines and kiosks, Mr. Shome said.