DBS Bank logs Rs 111 crore profit in FY20 from India operations

DBS Bank logs Rs 111 crore profit in FY20 from India operations

Singapore-based DBS Bank on Monday reported nearly eight-fold jump in profit for 2019-20 from its India operations at Rs 111 crore. The bank had posted a net profit of Rs 14.5 crore in 2018-19.

The lender, whose network in India has now increased to 34 branches, reported 24 per cent growth in net revenues at Rs 1,444 crore during the last financial year and a fall in stressed assets.

DBS Bank India CEO Surojit Shome said the performance should be seen as being demonstrative of the bank's focus and commitment to India.

“Despite the prevailing headwinds, we are confident that we will continue to capitalise on growth opportunities,” Shome said.

Gross non-performing assets ratio reduced to 2.60 percent as of March 31, 2020 as against 3.13 percent by the year-ago same period.

Troubles on the asset quality front in the past had led the bank to report losses from the India operations a few years ago. It had then announced a strategy to stay away from high risk loans.

The bank reported 6 percent growth in net advances to Rs 19,131 crore, in line with the 6.14 percent growth in bank credit at the industry level.

It reported a 5 percent rise in overall deposits to Rs 35,652 crore, with the share of the low-cost current and savings account deposits rising to 19 percent from the year-ago's 14 percent.

Its overall capital adequacy ratio declined to 16.33 percent as against 19.69 percent a year ago, and the core equity tier-I ratio stood at 13.12 percent.

DBS Bank is the largest among the foreign lenders who have chosen to operate as wholly-owned subsidiaries in the country.