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| DBS Chola to shut down 75 branches | |
| BS Reporter / Mumbai October 16, 2008, 0:57 IST | |
Non-banking finance company (NBFC) Cholamandalam DBS Finance has decided to shut down 75 of its 260 branches across the country.
While the move comes at a time when the lending environment is deteriorating, a DBS spokesperson said the move was initiated as shareholders and the board decided to focus more on vehicle finance, asset management, corporate lending and home equity.
“Chola DBS is closing 75 branches within its personal loans business,” the spokesperson added.
In recent months, a host of banks and NBFCs has tightened the leash on unsecured loans like personal loans. While many are refraining from extending small-ticket personal loans, many of which were seen as the Indian version of subprime credit, other lenders are only focusing on existing customers.
Banks and NBFCs are also scaling down growth in other loans like car finance. A part of the drop in demand for such loans is also attributed to higher interest rates.
Asked about plans of DBS for India, the spokesperson said, “India remains an important market in DBS’ regional expansion strategy and we are still in growth mode.”
DBS Bank of Singapore and the Murugappa group hold 38.5 per cent each in Chola DBS, while the remaining stake is held by the public and institutional investors.
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