DBS Bank posts net profit of Rs 8.6 crore in FY16

In FY16, the bank recorded a 22%growth in assets to while deposits base increased 35%

Singapore-based DBS Bank has managed to swing back to profit and has posted a net profit of Rs 8.6 crore in FY16 compared with a net loss of about Rs 275 crore in FY15, the first time that the bank had posted a loss since 1995.

The bank managed to record a profit as its other provisions slipped to Rs 170.95 crore from Rs 871.30 crore. However, provisions, especially for non-performing assets (NPAs), increased to Rs 239.75 crore from Rs 54.74 crore.

The increase in specific provisioning for NPAs came at a time when the bank saw further pressure on asset quality with gross NPAs increasing to 4.34 per cent at end of the quarter ended March, compared with 4.15 per cent in the corresponding quarter of FY15.

Apart from this, the bank also saw a deferred tax credit of Rs 32.7 crore that also helped in strengthening the balance sheet.

Surojit Shome, CEO-India, DBS Bank, said the all-round growth in advances and deposits, improved coverage and infusion of additional capital has further strengthened the bank's balance sheet in India

In FY16, the parent bank infused capital of Rs 667.5 crore in common equity Tier-1 capital. With this, till now the parent has infused Rs 6,168.9 crore in the Indian subsidiary. The capital adequacy ratio of the bank was at 18.64 per cent at the end of FY16.

"The capital infusion by DBS Group underlines the bank's commitment to India and its plan to convert into a wholly-owned subsidiary, which is awaiting regulatory approval," the bank said.

In FY16, the bank recorded a 22 per cent growth in its assets to Rs 43,845.4 crore while its deposits base increased by 35 per cent.